MOSCOW, Feb 9 – RIA Novosti. The International Monetary Fund called on the Bank of Russia to cut the key rate by 0.5 percentage points. in 2021.
The IMF believes that the Russian regulator should be guided by the condition under which the refusal to cut the rate in the coming months will lead to an increase in inflation.
“Short-term inflationary pressures caused by the weakening of the ruble are currently keeping inflation above the four percent target, but IMF officials expect inflation to fall to 3.5% by the end of 2021,” the document says.
Analysts interviewed by RIA Novosti previously suggested that the Bank of Russia would keep its key rate unchanged for the fourth time in a row against the background of an increased inflationary background.
Last summer, the regulator cut the rate to a historic low of 4.25% per annum. However, the depreciating ruble exchange rate amid revival of demand after the removal of some of the “coronavirus” restrictions accelerated inflation, and in early autumn the Central Bank was forced to pause the easing cycle.
In Russia, inflation for the year amounted to 4.9% against 3% a year earlier, and in January it accelerated to 5.2%.