Oreshkin sees room for rate cut the Central Bank before the end of the year

© RIA Novosti / Natalia to Seliverstova in fotobanka the building of the Central Bank of Russia on Neglinnaya street in Moscow. Archival photoOreshkin sees room for rate cut the Central Bank before the end of the year© RIA Novosti / Natalia to Seliverstova the image Bank

The head of the Ministry Maxim Oreshkin sees opportunities to reduce the key rate of the Central Bank of the Russian Federation until the end of the year.

The Bank of Russia last week kept its key rate at 9% per annum. This year, the Central Bank reduced the key interest rate three times. The last time — in June — a decline of 0.25 percentage points.

«I generally appreciate the work of the Central Bank positively, they set themselves in 2015-2016, the goal is to get inflation to 4%. We see that this year this goal will be achieved. It is now fast approaching inflation to this level after a surge associated with cold weather and non-standard behavior of prices of vegetables compared to the behavior in the past year. So while the Central Bank fully cope with the task,» said Oreshkin journalists.

On the question of whether the expected reduction in the key rate before year-end, the Minister said: «the Bank itself did not rule out such downward movement, and it is clear that as soon as inflation moves below 4%, the possibility for further rate cuts, of course, will be present».

In the July press release, the Central Bank maintained the signal of the need to maintain a moderately tight monetary policy to maintain inflation close to the target level, but that still sees room to cut key rates in the second half of 2017.