Russia’s central bank confirmed the slowdown in the annual inflation rate in Russia, which has reached 6%, noting that the next reduction of the key interest rate will only happen in the first or second quarter of 2017.
The head of the Russian Central Bank, Alvira Nabealina: “Over the past two years, we followed the Russian central bank moderate monetary policy, which is necessary to curb inflation, which protect the savings of citizens from the effects of negative external developments. The pace of growth of prices for consumers fell to 6% an annual basis. according to our estimates, also will fall slightly by about until the end of the year. ”
She explained that the Russian central target rate of inflation at 4% on an annual basis, noting that the peak price growth was at the beginning of 2015 and then went to 16.9% on an annual basis.
She added that monetary policy during the year and a half the next, will be relatively stringent, which means that the next reduction in the price of the main interest will be in the first quarter – the second of next year, noting that the Russian Central follows a very cautious approach to change its key interest rate from its current level of 10 %.
And faced Russia over the past two years of economic crisis due to falling oil prices, which is one of the basic resources of the country, and Western sanctions that were imposed against the backdrop of Moscow’s position on the Ukrainian crisis, the Russian economy has proved its worth and came out of the trap of recession, which is expected to be a decline in output year 2016 local small, up to 0.2%, compared with a decline of 3.7% in the past year.
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