The Board of Directors of the Central Bank of the Russian Federation (Bank of Russia) took a decision on reduction of the key interest rate to 15% as opposed to the previous 17% per annum, declared the press-service of the Bank on January 30.
Thus, the decision was taken taking on consideration of the risk balance change of the consumer prices rise and the economics cooldown.
According to the announcement, the decision to dramatically raise the key rate taken by the Bank of Russia on December 15, 2014, resulted in stabilisation of inflation and depreciation expectations to the extent the Bank of Russia expected. The current surge of inflation is driven by the accelerated price adjustment to the ruble depreciation being time-limited. Further the inflation pressure will be contained by decrease of economic activity. According to Bank of Russia forecast, consumer price growth will be lower than 10% in January 2016.
