CBR to consider reducing rate by 100 bp as one of options at June board meeting
MOSCOW. May 22 (Interfax) - The likelihood of a wholesale key rate reduction of 100 basis points will be considered as one of the options at a Central Bank of Russia (CBR) board meeting on monetary policy in June, CBR Governor Elvira Nabiullina said during an online conference on Friday.
"There is an option of a 1 percentage point reduction on the table, but the likelihood is still less than 100%," Nabiullina said.
"The level of the rate will be determined such that we can provide for the stability of inflation near 4%. This is what we're proceeding from," the CBR head said.
Previously, she had said that without monetary easing, inflation in 2021-2022 could be below 4%.
There are no grounds for conducting emergency CBR meetings on monetary policy, she also said.
"In our opinion, scheduled decision-making at the board meetings, the schedule of which is announced in advance, is one of the elements of predictability in our policy. And unscheduled meetings, of course, they can take place, but they are justified only in case of a sharp change in the situation in the economy, in financial markets. In our opinion, there are no ground at the moment for the Central Bank to make the necessary decisions in an unscheduled manner, there are no such circumstances now, and we have not seen that in March nor do we see it now. And we see that the situation, in general, is unfolding near our basic forecast," Nabiullina said.