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The Central Bank kept its key rate at 7.5% per annum – Russia news today

The Central Bank kept its key rate at 7.5% per annum

© RIA Novosti / Natalia to Seliverstova in fotobanka the building of the Central Bank of the Russian Federation. Archival photo<img src="/wp-content/uploads/sites/5/2018/10/82add14db9799991036f07fcf0b1dead.jpg" alt="The Central Bank kept its key rate at 7.5% per annum” />© RIA Novosti / Natalia to Seliverstova the image Bank

The Bank of Russia kept its key rate at 7.5% annual, follows from a press release of the regulator.

This year, the Central Bank has twice cut rates in February and March by 0.25 percentage points, and then took a break. In September, for the first time in 2014, the regulator raised the key rate by 0.25 percentage points to 7.5% amid a sharp weakening of the ruble, rising inflation risks and sanctions pressure.

Now, as noted in Central Bank, the situation in the domestic financial market stabilized, but risks remain preinflation.

Most polled by RIA Novosti analysts expect that the Bank of Russia will maintain the key rate. According to experts, the main goal of the previous raise — to give a signal that the regulator monitors the situation on the market and is ready to take measures for its stabilization.

The key rate

The key rate is the minimum interest rate at which the Central Bank provides loans to commercial banks for a week. This is also the maximum rate at which the regulator is willing to accept from banks funds on Deposit. Its size affects the rate of inflation.

The Bank of Russia introduced a key rate as a tool monetary policy on 13 September 2013. This was done in the framework of transition to inflation targeting regime with the aim of increasing transparency.

For 15 years the rate has varied. Two years ago it was 11 percent per annum. By September 2016 fell one percent, while a year ago stood at 9.75 percent.

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