Russia: CBR leaves policy rate unchanged at 7.75% as expected

At its March meeting, the Central Bank of the Russian Federation has decided to keep its key policy rate unchanged at 7.75% as expected.

Key takeaways from the press release

• Since the beginning of this year, monetary conditions have not seen significant changes.
• The economy is close to its potential. 
• Short-term pro-inflationary risks have abated.
• Elevated and unanchored inflation expectations also pose a meaningful risk.
• The Bank of Russia leaves mostly unchanged its assessment of risks associated with wage movements, possible changes in consumer behaviour and budget expenditures.
• The Bank of Russia will take into account inflation and economic dynamics against the forecast, as well as risks posed by external conditions and the reaction of financial markets.
  • If the situation develops in line with the baseline forecast, the Bank of Russia admits the possibility of turning to cutting the key rate in 2019.