Analysts expect CBR to cut key rate by 50-100 points Fri

MOSCOW. Dec 19 (Interfax) - Analysts expect the Central Bank of Russia (CBR) to continue its cycle of easing monetary policy when its board meets Friday to decide on the level of the key interest rate.

Most analysts forecast that the CBR will cut the rate by 50 basis points to 16%, but some economists expect a deeper cut of 100 points to 15.5%.

The CBR lowered its key rate by 50 points to 16.50% in October, but two other options were also on the table: to keep the rate at 17% or cut it by 100 points to 16%. The CBR accompanied its decision with a neutral signal regarding the future direction of monetary policy.

The CBR will keep monetary policy as tight as needed to bring inflation back on target, and future decisions on the key rate will be made depending on how sustainable the slowdown of inflation is and the dynamics of inflation expectations, the CBR said at the time.