Russia’s central bank announced on Friday left its policy rate unchanged at 4.25% but noted that it will consider the possibility of further rate cuts. Additional takeaways from the policy statement “Inflation seen at 3.7-4.2% in 2020. In 2021, it will be close to 4%.” “Growth of prices slightly above forecast.” “If the situation develops in line with the baseline forecast, the Bank of Russia will consider the necessity of further key rate reduction at its upcoming meetings.” “This is driven by two key factors: an active recovery of demand after the lockdown as well as the weakening of the ruble on the back of generally increased volatility in global markets and higher geopolitical risks.” “Inflation expectations of households and businesses remain elevated.” “Although the effect of short-term proinflationary factors has strengthened, disinflationary risks still prevail in the medium run.” “As the stage of lively recovery growth owing to restriction lifting and support measures complete, the pace of return of the global and Russian economies to their potential will slow down.” “This will have a constraining effect on price growth rates.” “In its key rate decision-making, the Bank of Russia will take into account actual and expected inflation dynamics relative to the target and economic developments over the forecast horizon, as well as risks posed by domestic and external factors. Market reaction The USD/RUB pair’s reaction was largely muted and it was last seen losing 0.17% on the day at 75.0785. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next EUR/USD set to fall with initial support seen at 1.1830 FX Street 2 years Russia’s central bank announced on Friday left its policy rate unchanged at 4.25% but noted that it will consider the possibility of further rate cuts. Additional takeaways from the policy statement "Inflation seen at 3.7-4.2% in 2020. In 2021, it will be close to 4%." "Growth of prices slightly above forecast." "If the situation develops in line with the baseline forecast, the Bank of Russia will consider the necessity of further key rate reduction at its upcoming meetings." "This is driven by two key factors: an active recovery of demand after the lockdown as well as the weakening of the ruble on the back of generally increased volatility in global markets and higher geopolitical risks." "Inflation expectations of households and businesses remain elevated." "Although the effect of short-term proinflationary factors… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.