ISTANBUL (Sputnik) — Russia’s Economic Development Minister Alexei Ulyukayev said Monday he disagreed with the central bank’s decision to maintain the key interest rate at 10 percent until the end of the year.
Ulyukayev thinks inflation could reach the target value of 4 percent.
"Inflation is less dependent on the key rate than on stagnant consumption… Consumption activity is currently very low, meaning that the central bank is likely to meet the 4-percent target sooner than it expects," the minister continued.
The country’s main lender, Bank of Russia, cut its benchmark rate from 10.5 percent to 10 percent in mid-September citing a declining inflation rate. It did not rule out further cuts in the first half of 2017.
