Russia's Monetary Policy in 2017

19 Pages Posted: 31 Jul 2018

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

Anna Kiyutsevskaya

Russian Presidential Academy of National Economy and Public Administration (RANEPA)

Alexander Knobel

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

Pavel Trunin

Gaidar Institute for Economic Policy

Date Written: July 10, 2018

Abstract

The Bank of Russia eased at slow enough pace its monetary policy in 2017 despite substantial deceleration in inflation, holding that ongoing inflation risks were high, including a possible decline in crude oil prices and capital outflow, upturn in consumer demand, fiscal policy uncertainty, as well as a relatively high and unstable degree of inflation expectations. In 2017, the monetary policy rate was cut by 2.25 percentage points to 7.75 percent per annum as the inflation rate over the same period (same-month-year-ago comparison) was down 2.6 percentage points to 2.5 percent. The Russian central bank cut the key interest rate six times: by 0.25 percentage points on March 27, by 0.5 percentage points on May 2, by 0.25 percentage points on June 19, by 0.5 percentage points on September 18, by 0.25 percentage points on October 30, and by 0.5 percentage points on December 15.

Keywords: Russian economy, monetary policy, fiscal policy, balance of payments

JEL Classification: E31, E43, E44, E51, E52, E58

Suggested Citation

Bozhechkova, Alexandra and Kiyutsevskaya, Anna and Knobel, Alexander and Trunin, Pavel, Russia's Monetary Policy in 2017 (July 10, 2018). Available at SSRN: https://ssrn.com/abstract=3211569 or http://dx.doi.org/10.2139/ssrn.3211569

Alexandra Bozhechkova

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

Anna Kiyutsevskaya

Russian Presidential Academy of National Economy and Public Administration (RANEPA)

Vernadskogo Prospect 82
Moscow, 119571
Russia

Alexander Knobel

Gaidar Institute for Economic Policy ( email )

3-5 Gazetny Lane
Moscow, 125009
Russia

Russian Presidential Academy and Public Administration (RANEPA) - Institute of Applied Economic Studies ( email )

Vernadsky Ave. 82
Moscow, 119571
Russia

Pavel Trunin (Contact Author)

Gaidar Institute for Economic Policy ( email )

Gazetny pereulok, 3-5
Moscow, 125993
Russia

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