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

See all articles by Alexandra Bozhechkova

Alexandra Bozhechkova

Gaidar Institute for Economic Policy; Russian Presidential Academy of National Economy and Public Administration (RANEPA) - Institute of Applied Economic Research

Pavel Trunin

Gaidar Institute for Economic Policy

Date Written: April 17, 2017

Abstract

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

Suggested Citation

Bozhechkova, Alexandra and Trunin, Pavel, Why the RF Central Bank Pursues a Cautious Policy (April 17, 2017). Monitoring of Russia's Economic Outlook. Moscow. 2017, No 6, pp. 7-9, Available at SSRN: https://ssrn.com/abstract=2956453 or http://dx.doi.org/10.2139/ssrn.2956453

Alexandra Bozhechkova (Contact Author)

Gaidar Institute for Economic Policy ( email )

Gazetny pereylok 3-5
Moscow, 125993
Russia

Russian Presidential Academy of National Economy and Public Administration (RANEPA) - Institute of Applied Economic Research ( email )

Russia

Pavel Trunin

Gaidar Institute for Economic Policy ( email )

Gazetny pereulok, 3-5
Moscow, 125993
Russia

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