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Bank of Russia Has Taken a Break in Monetary Policy Easing

Alexandra V. Bozhechkova – Head of Monetary Policy Department of the Gaidar Institute; Senior Researcher of the Russian Presidential Academy of National Economy and Public Administration, Candidate of Economic Sciences (Moscow, Russia). Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Pavel V. Trunin – Head of Center for Macroeconomics and Finance of the Gaidar Institute; Director of Center for Central Banks Studies of the Russian Presidential Academy of National Economy and Public Administration, Doctor of Economic Sciences (Moscow, Russia). Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

The Bank of Russia Board of Directors meeting on 18 September 2020 maintained the key rate unchanged at 4.25 per annum thus putting on hold monetary policy easing taking place from the outbreak of the coronavirus pandemic. This decision was due to the effect of short-term proinflationary risks including weakening of the ruble, rapid revival of consumer demand, growth in inflationary expectations of the population and businesses. According to the bank of Russia forecast annual inflation will hit 3.7-4.2% in 2020, 3.5-4.0% in 2020 and will stay close to 4% over the forecast horizon.

Key words: inflation, basic inflation, annual inflation, prices, consumer prices, monetary policy, key interest, Bank of Russia.