ALEXEI VEDEV: I EXPECT A CONSERVATIVE MONETARY POLICY IN THE NEXT YEAR AND A HALF
Alexei Vedev, Leading Researcher of the Gaidar Institute commented to the Expert magazine on the regular reduction of the key rate of the Central Bank of Russia.
The Central Bank of Russia has lived up to experts’ expectations and reduced the key rate from 7% to 6.5%, the Expert magazine reports. The Central Bank of Russia substantiated it by the fact that the rates of slowdown of the rate of inflation were higher than expected. Also, a 0.5 p.p. reduction of the key rate was caused by low economic growth rates, which the Central Bank of Russia called “moderate”, as well as the risks of slowdown of the global economy. Concurrently, the Central Bank of Russia revised downwards the forecast of the annual inflation rate based on the year-end 2019 results from 4.0%–4.5% to 3.2%–3.7%.
“In the next year and a half, I expect quite a conservative monetary policy. Proceeding from the fact that the Central Bank of Russia targets the rate of inflation at the level of no more than 4%, in the next year and a half the rate can be expected in the range of 6.00%-6.25%”, Alexei Vedev believes.
“In the next year and a half, I expect quite a conservative monetary policy. Proceeding from the fact that the Central Bank of Russia targets the rate of inflation at the level of no more than 4%, in the next year and a half the rate can be expected in the range of 6.00%-6.25%”, Alexei Vedev believes.