The Bank of Russia following the meeting of the Board of Directors decided to reduce the main rate from April 30 to 12.5%. The regulator explained that the decision is connected with strengthening of national currency.

The Board of Directors of the Central Bank decided to reduce the main rate by 1.5 percentage points, from 14 to 12.5%. Representatives of the regulator explained that a positive decision for the players in the money market was made due to the weakening of inflationary risks and strengthening of domestic currency.

The Central Bank stressed that in April 2015 on the background of strengthening of the ruble and a significant reduction in consumer demand monthly growth rate of consumer prices decrease. Also they said that there are signs of a stabilization of annual inflation. The regulator expects that the price growth will slow: by April 2016 inflation will be 8%, and in 2017 will be released on the target of 4%.

The Central Bank does not exclude the reduction of the key rate. "As an upcoming easing inflation risks, the Bank of Russia will be ready to continue the reduction of the key rate," - said the press service. It stressed that under the influence earlier decisions on the reduction of the key rate there is some adjustment down loan and Deposit rates.

But their level remains high. On the one hand, this helps to preserve the attractiveness of savings in rubles, with another - together with toughening of requirements to borrowers and providing leads to slower loan growth in annual terms, said the Bank of Russia.

Recall that the sharp rise in the key rate at once on 6,5 percentage points occurred in early December 2014: the Central Bank raised it from 10.5% to 17%. The decision was intended to limit the increased risks of devaluation and inflation, also with the fluctuations of the ruble.

Later the situation began to improve, and the regulator has decided to change its policy towards lowering key rates. 1st time she sank on 30 January, when the index has changed from 17% to 15%. The Agency has revised the likely hazards and March 16, 2015 again lowered its key interest rate to 14%.
sections: Economics