Russian Central Bank may take pause in rate cuts

Russian Central Bank may take pause in rate cuts

The Bank of Russia may take a pause in further key rate cuts, the Russian Central Bank governor Elvira Nabiullina said.

"We are discussing such an option but from our point of view, we need to complete some information work and preparation prior to starting publications of such forecasts, either midterm or long-term, so that such forecast is not perceived as a commitment of the Central Bank to move in that corridor," TASS cited Nabiullina as saying.

"I assume pauses if risks we were talking about materialize. We do not have any pre-determination in terms of the step: 0.25 percentage points or 0.5 percentage points. We also assume we may take a pause if the assessment of risks, midterm risks in the first instance, shows that probability of their materialization increases," Nabiullina stressed.

The Russian Central Bank should maintain a moderately tight monetary policy at this stage, even with further declines of the key rate, she went on.  "It will be supported even if the key rate is lowered. We believe that for some time we will need to maintain this moderately tight policy," Nabiullina added,