The space for further reduction in the key rate is, said the Chairman of the Bank of Russia (CBR) Elvira Nabiullina. Today, June 24, the regulator for the third time since the beginning of the pandemic coronavirus COVID-19 lowered its key rate to 4.25%. “In the future we will evaluate the nature of changes in monetary conditions, the nature of recovery processes in the economy, the dynamics of prices. And to assess the feasibility of reducing the key rate at the next meeting. In General, we believe that will still be a space for monetary policy easing,” said Mrs. Nabiullina at a press conference. Also, the Central Bank revised the range of neutral key interest rate in real terms — from 2-3% to 1-2%. “This means reducing the range of nominal neutral rate to 5-6% given the purpose of annual inflation close to 4%. Estimation of the neutral rate is primarily due to the change in external factors, including the formation of interest rates in the world economy at a lower level,”— said the head of the Bank of Russia. The decision of the Board of Directors of the Bank of Russia key rate was reduced by a further 25 basis points. This is a new historical minimum of the index. The reduction in the rate of the Central Bank explained the persistence of a significant influence of news factors on inflation. Read in the material “Kommersant” “Lower lower”.
