Economy Minister: Russian Central Bank May Lower Interest Rates in 2016

Economy Minister: Russian Central Bank May Lower Interest Rates in 2016 © Sputnik/ Ruslan Krivobok

11:51 01.02.2016(updated 12:46 01.02.2016) Get short URL

Russian economic development minister believes it is possible that country’s Central Bank will lower the rates in 2016.

MOSCOW (Sputnik) – Russia’s Central Bank may lower key interest rates in 2016 from its current 11 percent, Russian Economic Development Minister Alexei Ulyukayev said Monday.

“I believe this is possible,” Ulyukayev said in response to whether the Central Bank could lower the rates, though he did not indicate if this would be possible in the first or second half of 2016.

The minister also noted that Russia’s rate of inflation could be lower than 10 percent year-on-year for January.

The Bank of Russia kept interest rates at 11 percent on Friday, a figure Ulyukayev said matched his expectations.

“Inflation isn’t growing; moreover, the growth rate of prices is slowing. By the end of the month, I believe, we will already see single-digit figures, lower than 10 percent. This is still a high figure, but it isn’t 15 percent and isn’t what it was in the spring of last year, so we’re moving in the right direction,” Ulyukayev said.

At last week’s All-Russia People’s Front forum, Russian President Vladimir Putin called for maintaining living standards at “acceptable” levels in the face of growing inflation, possibly tapping into two state reserve funds to fund social programs.

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