Russian Central Bank promises modestly tough policy

Russian Central Bank promises modestly tough policy

Russian Central Bank Chairperson Elvira Nabiullina said that the central bank does not rule out that it may resume a cycle of key rate reduction in late 2019.

"Considering the external factors and such internal factors as the increase of value-added tax, the balance of risks in the economy and inflation has shifted to the proinflation risks. This means that the monetary policy should be kept to some degree tougher than if there were no such risks," PRIME cited her as saying.

The Central Bank chairwoman added that they do not rule out returning to the cycle of rate cuts, at the end of 2019, if things go under their key scenario.

In addition, Nabiullina said that a rise in the interest rates for retail deposits, following a hike of the central bank’s key interest rate, has made them more attractive for Russians. She added that interest rates on loans rose simultaneously, but they are still affordable.

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