The Russian central bank cut interest rates this morning to 8.5%. The most prominent of its statement were as follows:
- There may be further cuts in interest rates over the next two quarters.
- Inflation is approaching 4% while the economy continues to grow.
- The risk of inflation overshooting 4% over the medium term is dominated conditions rather than inflation deflection away from the target.
- Food prices will remain a source of volatility in the CPI.
- The CPI may remain at 3.2% until the end of this year.
- We will continue to tighten monetary policy at a moderate pace.