Russia’s Central Bank (Bank of Russia) kept the key rate at 4.25% per annum after four rounds of its reduction, according to a press release published following its board meeting on Friday, TASS reported.
“On 18 September 2020, the Bank of Russia Board of Directors decided to keep the key rate at 4.25% per annum. In recent months, price growth rates were slightly higher overall than the Bank of Russia’s expectations,” the regulator said.
The growth rates dynamics was driven by two key factors – an active recovery of demand after the lockdown and the weakening of the ruble on the back of generally increased volatility on global markets and higher geopolitical risks, the Bank of Russia explained.
If the situation develops in line with the baseline forecast, the regulator will consider the necessity of further key rate reduction at its upcoming meetings.
“In its key rate decision-making, the Bank of Russia will take into account actual and expected inflation dynamics relative to the target and economic developments over the forecast horizon, as well as risks posed by domestic and external conditions and the reaction of financial markets,” according to press release.
The Bank of Russia Board of Directors will hold its next rate review meeting on October 23, 2020.