Fast rates cut could create risks - Bank of Russia

UFA, 25 January 2017. /Bashinform News Agency, Galina Bakhshieva/. Fast rates cut could lead to a decrease in confidence in the ruble and propensity to save, the Director of the Department of Monetary Policy of the Bank of Russia Igor Dmitriev announces. This is reported by "Izvestiya".

According to Igor Dmitriev, historically low inflation, economic recovery opens the space for interest rate reduction, "though it is important to understand the risks of hasty decline".

The expert stressed that the need to focus on domestic investments, economic efficiency and the investment itself to stimulate economic growth.

In early January, the Russian President Vladimir Putin encouraged the Central Bank to lower interest rates on loans to reduce the deficits of regional budgets. The Bank of Russia is recommended to analyze the formation of interest rates on loans provided by banks to the country’s entities and take steps towards their reducing. The analysis should be prepared before November 1.