Russia Did Not Change Its Policy Rate

Russia Did Not Change Its Policy Rate Russia did not change its policy rate. The Central Bank of Russia decided to keep the policy rate constant at 4.5 percent. The Central Bank of Russia did not change the benchmark interest rate at its third meeting, although the inflation was over its targets. The main interest rate was kept constant at 4.25 percent. This figure is also the lowest on record. While 40 of the 44 economists who participated in the survey prepared by Bloomberg made the correct predictions, the remaining 4 economists were waiting for a decision to reduce interest rates, even if a little, from the meeting. After the ruble became inflationary, the central bank ended its monetary stretch cycle in September. President Elvira Nabiullina announced that inflation will begin to decline as of February. Making a statement last month, IMF analysts said that Russia should continue with its decision to cut interest rates to support the economy. Inflation has become a political issue when Russian Leader Vladimir Putin instructed the government to take urgent action last week.