FOREX TradingCharts.com

Financial News: Russia Central Bank Cuts Rate Again, Signals More

Russia Central Bank Cuts Rate Again, Signals More

10/27/2017 - 08:59:00 (RTTNews)

(RTTNews) - Russia's central bank slashed its key interest rate for a second successive policy session and suggested that more reductions are likely, as policymakers remained worried about inflation overshooting the bank's 4 percent target for this year.

The Board of Directors decided to cut the key rate by 25 basis points to 8.25 percent, the Bank of Russia said in a statement on Friday. The reduction was in line with economists' expectations.

In September, the bank had cut the rate by half a percentage point. The latest reduction was the fifth this year.

"Medium-term risks of inflation overshooting the target dominate over the risks of its persistent downward deviation," the bank said.

"In recognition of this, the Bank of Russia's ongoing transition from moderately tight to neutral monetary policy is gradual."

"The Bank of Russia Board of Directors leaves open the option of further rate reduction at its upcoming meetings," the bank added.

The bank noted that inflation holds close to 4 percent and its downward deviation against the forecast is driven mainly by temporary factors.

Inflation expectations remain elevated and their decline has yet to become sustainable and consistent, the central bank added.

The Bank of Russia projected inflation to be close to 3 percent by late 2017 and to reach 4 percent in future driven by temporary factors.

The bank retained its growth projection for this year at 1.7-2.2 percent.

"A closer look at the statement suggests that the Board sees more room for easing than before," Capital Economics economist William Jackson said.

"More importantly, for the first time the statement talked of the move from "moderately tight" monetary policy to "neutral" policy, although it stressed that this will be "gradual"," the economist noted.

This reinforces the point that the current easing cycle, while likely to be gradual, will ultimately bring interest rates down significantly, Jackson said.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2017 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


U.S. Consumer Sentiment Index Upwardly Revised More Than Expected (03 hr(s), 11 min(s), 14 sec(s) ago)
(RTTNews) - Consumer sentiment in the U.S. pulled back by less than initially estimated in the mon ...Full Story»

UK Sets Aside Extra GBP 3 Bln For Brexit Preparation, Trims Growth Forecasts (03 hr(s), 35 min(s), 14 sec(s) ago)
(RTTNews) - The UK government set aside an additional GBP 3 billion over the next two years to aid ...Full Story»

U.S. Durable Goods Orders Unexpectedly Pull Back 1.2% In October (04 hr(s), 08 min(s), 14 sec(s) ago)
(RTTNews) - Reflecting a sharp pullback in orders for transportation equipment, the Commerce Depar ...Full Story»

U.S. Weekly Jobless Claims Pull Back To 239,000 (04 hr(s), 21 min(s), 14 sec(s) ago)
(RTTNews) - After reporting an unexpected increase in first-time claims for U.S. unemployment bene ...Full Story»

U.S. Durable Goods Orders Unexpectedly Slump 1.2% In October (04 hr(s), 45 min(s), 14 sec(s) ago)
(RTTNews) - Reflecting a sharp pullback in orders for transportation equipment, the Commerce Depar ...Full Story»

U.S. Weekly Jobless Claims Pull Back Roughly In Line With Estimates (04 hr(s), 51 min(s), 14 sec(s) ago)
(RTTNews) - After reporting an unexpected increase in first-time claims for U.S. unemployment bene ...Full Story»

U.S. Weekly Jobless Claims Pull Back Roughly In Line With Estimates (04 hr(s), 53 min(s), 14 sec(s) ago)
(RTTNews) - After reporting an unexpected increase in first-time claims for U.S. unemployment bene ...Full Story»

Turkey CB Likely To Follow More Aggressive Tightening Policy Amid Weak Lira (06 hr(s), 06 min(s), 14 sec(s) ago)
(RTTNews) - The recent slide in the Turkish Lira may prompt the central bank to consider a more ag ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

U.S. Consumer Sentiment Index Upwardly Revised More Than Expected

11/22/2017 - 10:20 AM (RTTNews)
(RTTNews) - Consumer sentiment in the U.S. pulled back by less than initially estimated in the mon ...Full Story>>

UK Sets Aside Extra GBP 3 Bln For Brexit Preparation, Trims Growth Forecasts

11/22/2017 - 09:56 AM (RTTNews)
(RTTNews) - The UK government set aside an additional GBP 3 billion over the next two years to aid ...Full Story>>

U.S. Durable Goods Orders Unexpectedly Pull Back 1.2% In October

11/22/2017 - 09:23 AM (RTTNews)
(RTTNews) - Reflecting a sharp pullback in orders for transportation equipment, the Commerce Depar ...Full Story>>

U.S. Weekly Jobless Claims Pull Back To 239,000

11/22/2017 - 09:10 AM (RTTNews)
(RTTNews) - After reporting an unexpected increase in first-time claims for U.S. unemployment bene ...Full Story>>

U.S. Durable Goods Orders Unexpectedly Slump 1.2% In October

11/22/2017 - 08:46 AM (RTTNews)
(RTTNews) - Reflecting a sharp pullback in orders for transportation equipment, the Commerce Depar ...Full Story>>

Binary Options Articles Courtesy of NADEX

These pages, and all content ©TradingCharts.com Inc and other copyright holders. Permission is not granted to redistribute charts, data, news or other information found on this site, in any manner. Although it is believed that information provided is accurate, TradingCharts will not accept liability for any loss or damage that may arise from use of the content, inability to access the website, or delay or failure of receive of any information provided through this site.