Bank of Russia disclaims reports hackers steal 2B rubles from its correspondent accountsBusiness & Economy December 03, 14:42
Lavrov: joint projects with Japan to bring relations to new levelRussian Politics & Diplomacy December 03, 12:29
Defense ministry says Russia delivers humanitarian aid to Aleppo daily 'unlike UK'World December 03, 7:29
Foreign ministers of Russia, Japan will discuss Putin’s upcoming visit to TokyoRussian Politics & Diplomacy December 03, 3:37
President of Luxembourg Forum welcomes Russia’s attention to threat of nuclear terrorismWorld December 03, 3:11
Presidential polls to determine vector for Uzbekistan’s further development — CEC chairmanWorld December 03, 2:44
Lavrov, Kerry discuss settlement in Syria at conference in RomeWorld December 03, 1:36
Kiev halves water supplies to LPR from another pumping station — LPR negotiatorWorld December 03, 0:50
Civilian wounded by Ukrainian sniper near Gorlovka — agencyWorld December 03, 0:31
MOSCOW, April 27. /TASS/. Russia is facing a reversal of inflation and inflationary expectations, which is creating background for easing of the monetary policy, Deputy Minister of Economic Development Nikolai Podguzov said Wednesday.
"We have a feeling that the reversal of inflation and inflationary expectations is already there, which has created a background for easing of the monetary policy," he said, adding though that "this is largely for the Central Bank to decide whether it’s reasonable to slash rates at the nearest meeting."
According to Podguzov, the Economic Development Ministry expects the regulator to ease the rhetoric regarding its monetary policy.
"The background for the rates’ reduction is in place. This cycle may be launched via some verbal interventions and the rhetoric of the press release [following the board meeting of the Central Bank on its key interest rate — TASS], or it may be done simply by cutting the rate," Deputy Minister said.
According to Podguzov, this cycle (of the key rate’s reduction — TASS) has to be long-term so that the signal remains clear and efficient within "at least several quarters or even years" (given the inflation target).
"I think that the Central Bank has to offer this trajectory of rates’ reduction in the nearest future. And already on Friday (April 29) we’ll see the decision made by the Bank of Russia. I think the Central Bank at least has to ease the rhetoric but I do not rule out that it will even consider reduction of rates," he said.
Earlier Russia’s Economic Development Minister Aleksey Ulyukayev said the regulator could have been quicker with lowering its key rate as the current inflation rate allows it to do so. In 2015, inflation in Russia stood at 12.9% while in March this year annual inflation was down to 7.3%.
The Bank of Russia took the decision to keep the key rate at 11% at the latest board meeting on March 18. The rate has been unchanged since last August. The next meeting of the regulator’s board of directors on its monetary policy will be held on April 29.