Russia cuts key interest rate fifth time in 2017
                 Source: Xinhua | 2017-10-27 23:02:13 | Editor: huaxia

Russia's ruble banknotes are seen in the file photo taken on April 28, 2017. (Xinhua/Shi Hao)

MOSCOW, Oct. 27 (Xinhua) -- The Russian central bank Friday lowered its key interest rate by 25 basis points to 8.5 percent for the fifth time this year with inflation and economic growth levels close to the target.

It said it has left open the option of further rate cuts in the coming months.

Inflation was close to the targeted 4 percent, though an earlier estimate on Oct. 23 indicated annual inflation at 2.7 percent.

The downward deviation was due to temporary factors, as food prices showed stronger-than-expected decline in September due to larger supply of farm produce, and exchange rate movements, the bank said in a statement.

The gross domestic product (GDP) continued to grow in line with estimates while farm and mechanical engineering output, freight turnover and the production of durable consumer goods all increased, it said.

The central bank last month increased its forecast for GDP growth this year to 1.7-2.2 percent from the previous 1.3-1.8 percent.

However, it did not provide its GDP estimate in the third quarter of this year and official statistics were not yet available.

Russia's GDP rose 2.5 percent in the second quarter of this year, up from 0.5 percent in the first quarter, according to official statistics.

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Russia cuts key interest rate fifth time in 2017

Source: Xinhua 2017-10-27 23:02:13

Russia's ruble banknotes are seen in the file photo taken on April 28, 2017. (Xinhua/Shi Hao)

MOSCOW, Oct. 27 (Xinhua) -- The Russian central bank Friday lowered its key interest rate by 25 basis points to 8.5 percent for the fifth time this year with inflation and economic growth levels close to the target.

It said it has left open the option of further rate cuts in the coming months.

Inflation was close to the targeted 4 percent, though an earlier estimate on Oct. 23 indicated annual inflation at 2.7 percent.

The downward deviation was due to temporary factors, as food prices showed stronger-than-expected decline in September due to larger supply of farm produce, and exchange rate movements, the bank said in a statement.

The gross domestic product (GDP) continued to grow in line with estimates while farm and mechanical engineering output, freight turnover and the production of durable consumer goods all increased, it said.

The central bank last month increased its forecast for GDP growth this year to 1.7-2.2 percent from the previous 1.3-1.8 percent.

However, it did not provide its GDP estimate in the third quarter of this year and official statistics were not yet available.

Russia's GDP rose 2.5 percent in the second quarter of this year, up from 0.5 percent in the first quarter, according to official statistics.

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