CBR to consider lowering inflation target after rate stabilizes near 4%, uncertainty subsides

MOSCOW. Aug 14 (Interfax) - The Central Bank of Russia (CBR) will assess the advisability and possible timeframe for lowering its inflation target after the inflation rate stabilizes near 4% and general economic uncertainty subsides, the CBR said in the draft guidelines for the government's unified monetary policy for 2024-2026.

The CBR will continue to discuss the issue of lowering the inflation target with businesses, analysts and experts, public organizations, the government and the Federal Assembly.

"If the Bank of Russia makes a decision to lower the level of the target it will be announced ahead of time (several years before the change) to minimize the short-term costs of transitioning to the new target level," the CBR said.

There were potential grounds for lowering the inflation target by the end of 2021, but at this stage, when external conditions for the Russian economy have radically changed and its restructuring continues, there needs to be extra caution when considering this issue, the CBR said.