Moscow: Russia’s central bank kept its key interest rate unchanged at 10 per cent on Friday, but said it might cut rates in the first or second quarter of next year.
The central bank, which has twice cut its key rate this year, said in a statement on its website it would hold the key rate at 10 per cent until the end of 2016.
“The Bank of Russia will assess inflation risks and compliance of economic performance and inflation with the baseline scenario when it makes its key rate decision in the upcoming months,” it said.
Consumer inflation in Russia slowed to 6.2 per cent as of late October, down from 6.4 per cent in September.
With moderately tight monetary policy, the bank forecasts that annual growth in consumer prices will be less than 4.5 per cent in October 2017, dropping to its target of 4 per cent by the end of that year.
But the bank warned there were still a risk that its target might not be met because of domestic inflation expectations, a possible weakening in household saving, and higher real wages not supported by any rise in labour productivity.
The next rate setting meeting will be accompanied by a news conference with Elvira Nabiullina, the central bank governor, and is scheduled for December 16.
