YEREVAN, September 11. / ARKA /. The Bank of Russia left the key interest rate unchanged Friday at 11%, citing ruble-driven inflationary risks, and said that its further rate decisions will depend on the risks of inflation and cooling of the economy.
The Bank of Russia has cut rates five times this year. Today’s decision is said to be in line with the market consensus. The key rate remains above 10.5%, the level it was at in early December, before an emergency increase to 17% that helped to stabilize the plummeting ruble.
The decision to hold rates at their present level follows an increase in annual inflation to 15.8% in August from 15.6% in July, which was caused by a drop in the ruble on the back of falling oil prices, according to .news reports
“The key sources of inflationary risks and further worsening of the macroeconomic conditions, continued inflationary expectations at a high level and a revision of regulated prices and tariffs for 2016-2017…and easing of the budget policy,” the central bank said in a statement.
The Russian government acknowledged last week that the country’s economy is going to take longer to recover than it previously expected, weighed down by the slump in the value of the ruble. -0-
