Why the RF Central Bank Pursues a Cautious Policy
Monitoring of Russia's Economic Outlook. Moscow. 2017, No 6, pp. 7-9
3 Pages Posted: 21 Apr 2017
Date Written: April 17, 2017
On March 24, the Bank of Russia decided to reduce its key rate by 0.25 percentage point to 9.75%. The Bank of Russia’s intention to continue its moderately rigid monetary policy, in spite of the significant slowdown in real inflation, can be explained by the inertia of inflation expectations, as well as the persistent risks of potential worsening of the balance of payments as a result of a plunge of prices of energy carriers followed by considerable capital outflow.
Keywords: Russian economy, Bank of Russia, monetary policy
JEL Classification: E31, E43, E51, E58
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