CBR to factor in inflation trends, expectations and growth in market rates when making key rate decision in Oct

MOSCOW. Oct 17 (Interfax) - The board of governors of the Central Bank of Russia (CBR) will take into account the dynamics of inflation, inflation expectations and growth of market rates when making a key rate decision on October 28, Central Bank Deputy Governor Alexei Zabotkin told reporters in the State Duma.

"The board of governors will consider all facts and indicators and make a decision based on the updated forecast," Zabotkin said.

In September, the CBR, having reduced its key rate by 50 basis points - to 7.50%, did not give the market a traditional signal about its future actions.

The Central Bank is currently also refraining from providing additional signals. "We give some clarifying instructions about the balance of risks and the forecast only when the accumulated data point unambiguously in one direction," Zabotkin said, responding to a question about whether the regulator plans to adjust market expectations prior to the "week of silence."

"The rate of price growth is moderate. The level of interest rates, if you look at the OFZ curve, it has increased somewhat, it is adjusting - last week the average far end dropped another 20 basis points, but it is still higher by 70-100 basis points than it was before the previous board meeting when the previous decision was made," the deputy governor said, explaining the logic of the decision making.

"The important points for us are inflation expectations, which were going up in August-September for the population, and for enterprises price expectations stopped declining. Now we will get those points before the board meeting. This will also be an important factor in making a decision," Zabotkin added.

"The important points for us are inflation expectations, which were going up for the population in August-September, while for businesses, price expectations stopped decreasing. Now we will get those points before the board meeting. This will also be an important factor in making a decision," Zabotkin said.