He reported that the policy of the Bank of Russia will not undergo major changes in 2018. She’ll still be moderately tough. Nabiullina sees opportunities for further reduction of the key interest rate. According to her forecast, the rate may be reduced to 6-7 percent between 2018 and 2019. It’s gonna be slow, if necessary. Currently, the base rate of the Russian Central Bank is 7.75 percent. The rate of rate reduction will mainly depend on the situation in the country’s economy.
Elvira Nabiullina said that Russia will end the year with an economic growth rate of less than 2 percent. It can range from 1.7 to 1.8 percent. Next year the Russian economy will grow by 1.5-2.0 percent. The head of the Bank of Russia also noted that the dynamics of GDP may be more positive. But this is only possible if the necessary structural changes are implemented.
The Central Bank intends to continue to take measures to improve the banking system. However, Elvira Nabiullina hopes that in a year or two the revocation of licenses at banks and their rehabilitation will become extremely rare events.