Central Bank of Russia Will Not Drop Base Rate Before June – Nabiullina

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Elvira Nabiullina - Sputnik International
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The Central Bank of Russia will not consider reducing its base rate until a June meeting of senior policy managers, said Elvira Nabiullina, the head of the banking regulator.

MOSCOW, April 2 (PRIME) - The Central Bank of Russia will not consider reducing its base rate until a June meeting of senior policy managers, said Elvira Nabiullina, the head of the banking regulator.

In early March, the bank hiked the key rate from 5.5 to 7 percent and reversed the criteria of its money-and-credit policy due to the weakening of ruble.

"On March 14, at the session of a board of directors, a signal was sent that the rate shouldn't be reduced in the coming months [at least until the June session]," Nabiullina said.

The rate increase will curb inflation risks and lower the possibility of speculation on the exchange market, according to the Central Bank's head. "During the year, while shaping the money-and-credit policy, we will continue to follow the principals of maintaining price and financial stability, but will also consider the economic situation and other factors," added Nabiullina.

She confirmed the Central Bank still plans to switch to a floating currency regime, while maintaining the possibility of interventions for the sake of financial stability.

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