Central Bank for the fifth time kept its benchmark rate unchanged at 11% – Forbes Russia

The Board of the Central Bank of directors decided not to change its key interest rate and keep it at the level of 11%, the press service of the regulator on Friday, March 18.

«When deciding on the key rate, the Board of Directors of the Bank of Russia came from expectations lower than in the December forecast, oil prices “, – the report indicates. The Central Bank said that the oil market is also stored oversupply amid slowing growth in China. On the regulator’s decision influenced the expansion of oil supplies from Iran, as well as increased competition for market share, according to a press release.

In this case, the Central Bank made it clear that there is a “de facto easing of monetary conditions, even at constant the key rate. ” According to the forecast of the Bank of Russia, in view of the decision, annual inflation in the country will be less than 6% in March 2017 and will reach the target level of 4% at the end of 2017.

The last time the central bank kept its benchmark rate unchanged at 11% per annum on 29 January. “Against the backdrop of a new wave of reduction of the monthly consumer price inflation of oil prices have stabilized at a high level”, – stated in the press service of the regulator. In connection with this increased the risk of accelerating inflation, the Central Bank explained. The regulator did not rule out “the tightening of monetary policy” in the event the inflation risks.

At this level 11% of the key rate was set at the end of July 2015. In September and October 2015, the Central Bank did not reduce the rate, explaining his decision to the increased inflationary risks. In December 2015 the regulator also refused to change the key rate, keeping it at the level of 11%.