The Bank of Russia Switches Over to Monetary Policy Easing

Monitoring of Russia's Economic Outlook. Moscow. IEP. 2019. No. 10, pp. 5-7

3 Pages Posted: 30 Jun 2019

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: June 28, 2019

Abstract

At its June meeting, for the first time this year, the Bank of Russia Board of Directors decided to cut the key rate by 0.25 pp. to 7.5% per annum. Such a decision was motivated by the plunge of annual inflation in April-May 2019 to 5.1%, coupled with weakening inflation risks. The inflation forecast for 2019 has been revised, the target being reduced from 4.7–5.2% to 4.2–4.7%. The RF Central Bank expects that the annual inflation rate in 2020 will hover around 4%, and so it plans to roundup its transition to neutral monetary policy by the middle of the next year.

Keywords: Russian economy, monetary policy, central banks

JEL Classification: E31, E43, E44, E51

Suggested Citation

Bozhechkova, Alexandra and Trunin, Pavel, The Bank of Russia Switches Over to Monetary Policy Easing (June 28, 2019). Monitoring of Russia's Economic Outlook. Moscow. IEP. 2019. No. 10, pp. 5-7, Available at SSRN: https://ssrn.com/abstract=3411527 or http://dx.doi.org/10.2139/ssrn.3411527

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

Pavel Trunin (Contact Author)

Gaidar Institute for Economic Policy ( email )

Gazetny pereulok, 3-5
Moscow, 125993
Russia

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