The Board of the Central Bank on July 25 decided to reduce the main rate by 0.5 percentage points and set at 13.5 percent per annum, the regulator’s press service said.
The previous time the bet was changed in March last year, then it decreased from 15 percent to 14 percent.
The rate is reduced taking into account the expected trajectory of inflation and reducing dual risks, the report said.
“The decrease in basic inflation and the dynamics of inflationary expectations indicate a lesser incidence effect of energy tariffs, which strengthens the conflation in the lower boundary of the forecast range by the end of the year,” the Central Bank,
strengthens.
At the same time, relatively harsh monetary conditions contribute to a reduction in a positive release of release and a decrease in inflationary pressure from demand, the regulator explained.
The level of annual inflation in June amounted to 10.6 percent, while the stable components of inflation and the prices for fruit and vegetable products significantly decreased, the Central Bank said. The dynamics of prices in foreign markets has a restraining effect on imported inflation.
“The decrease in inflation on food products and the stability of the exchange rate had a positive impact on the inflationary expectations of the population, which led to their noticeable decrease in June. In turn, this creates the basis for reducing inflationary pressure from the expectations,” the report said .