Bank of Russia Has taken a Break in Monetary Poicy Easing

The Bank of Russia Board of Directors meeting on 18 September 2020 left 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