Russian Central Bank keeps key rate at 4.25% for second time in row

14:57, 23 October 2020 24
Photo: Sergey Lantyukhov/

After the Board of Directors' meeting on October 23, the Russian Central Bank (the Bank of Russia) has decided to keep the key rate at 4.25 percent per annum for the second time in a row, reports referring to the bank's website.

Inflation develops under the Bank of Russia forecast, and by the end of 2020 is expected within 3.9-4.2 percent. If the situation develops following the baseline forecast, the Bank of Russia will assess the feasibility of further cutting the key rate at the next meetings, reads the regulator's message.

The Bank of Russia set the key rate at 4.25 percent in July 2020. The deposits of Russian citizens in banks in September practically didn't increase. This trend continues for the third month in a row, according to the Central Bank. 

Weak dynamics persist for the third month in a row - in August, the growth was zero, and in July, it amounted to 0.3 percent. The regulator notes that, to a large extent, the funds of Russian citizens increased due to the growth of balances on escrow accounts. Excluding these accounts, the population's deposits decreased by 0.2 percent. earlier reported that Russia's external debt since the beginning of the year decreased by $30.3 billion.