When Will the Russian Central Bank Lower Interest Rates?

Elvira Nabiullina, the governor of the Russian Central Bank, revealed today that the bank will need a period of two to three months to confirm a decline in inflation before making any decision on lowering interest rates. Nabiullina stated in remarks to the RBC media group that it is not yet clear when the bank will begin to reduce interest rates. She said, "It will take two or three months or more; it depends on how much a large number of indicators that define sustainable inflation decrease." The bank is scheduled to meet on February 16 to determine the benchmark interest rate. The Russian Central Bank raised the key interest rate by 100 basis points to 16 percent earlier this month, continuing the rate increase for the fifth consecutive time in an effort to combat rising inflation rates, indicating that the tightening cycle in monetary policy has nearly ended.