The Minister Of Economic Development Alexei Ulyukayev
Photo: Alexander Kryazhev/RIA Novosti
Central Bank should cut key rate by another 0.5%, says the Minister. If this does not happen, the situation is “just ridiculous”, said the Minister
The Ministry expects that the Bank of Russia on the nearest Board of Directors in September, will cut rates by a further 0.5%. This was stated by the head of the Ministry Alexei Ulyukayev, reports “RIA Novosti”.
Expected (a rate decrease). Would be quite funny if they don’t do it now. It was time for a long time, and now, well, just an anecdotal situation will be”, — he told, answering a question of journalists.
At the meeting of the Board of Directors in June, the Central Bank decided for the first time in nearly a year to reduce the key rate, it decreased by 0.5 percentage points and now stands at 10.5%. Then the Central Bank explained its decision by the stabilization of inflation, lower inflation expectations and risks, and prospect of economic recovery. At the same time the Bank of Russia lowered the forecast of inflation by the end of 2016 to 5-6%. In July, the Central Bank kept the rate at this level.
On 31 August, the Central Bank issued the Bulletin, which predicted that the availability of credit for all categories of borrowers in the second half of 2016 will rise. The reason for the improvement was the high level of competition and the reduction of the key rate of the Bank of Russia.
The next meeting of the Board of Directors of the Bank of Russia, which will address the issue of the level of the key rate, scheduled for September 16, 2016.