Central Bank of Russia does not see any reason to revise neutral key rate; monetary policy to remain within 7.5%-8.5%

MOSCOW. July 25 (Interfax) - The board of directors of the Central Bank of Russia, as part of preparing the main directions of monetary policy, considered the range of the neutral rate and did not see any reason for revision, as it will remain within 7.5%-8.5%, Central Bank Governor Elvira Nabiullina said during a press conference on Friday.

"We considered the neutral range as part of preparing the main directions of monetary policy, namely the subject of analysis, though did not find any reason for revising now," Nabiullina said.

The neutral rate in real terms is 3.5%-4.5%, which corresponds to 7.5%-8.5% in nominal terms.

Central Bank Deputy Governor Alexei Zabotkin explained that, accordingly, it would not be revised in the main directions either, because the basic forecast of the July meeting, which was published today, will be included in the main directions. "There was no significant discussion about revising the neutral real rate," he said.