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Monday, August 21, 2017

CBR dispels reports of key rate cuts

The Eurasian Development Bank (EDB) said Wednesday that despite previous reports, the Central Bank of Russia (CBR) has not announced any cuts to its key rate in the first quarter.

According to the EDB, media reports had surfaced that stated CBR officials had indicated the possibility of key rate cuts of 2 to 3 percent during a National Financial Board Meeting near the end of 2014.

“The Bank of Russia rejects the reports that it announced its intention at the National Financial Board to cut the key rate in the first quarter,” CBR representatives said.

The CBR raised its key rate from 10.5 percent to 17 percent in response to continued depreciation of the ruble in the face of falling oil prices and western sanctions announced on Dec. 16. The December hike was made to stave off further damage amid the currency's record-low exchange rates of 80 rubles per U.S. dollar and 100 rubles per euro.

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