According to the Central Bank of Russia (CBR), “there is the potential to reduce the key rate in the first half of the year”. Due to the fact that the economic situation has improved, while the depreciation of the ruble slowed down, the income of the population grew.
In the end, the Central Bank expects in the first quarter GDP growth of 0.4-0.7%. And maybe in the first half it will adjust key rate, which currently stands at 10%.
According to authorities, in January 2017 industrial production rose by +2.3% comparing to 2016, agricultural – by +0.6%, real wages by 3.1%. The latter, together with a one-time payment to retirement has led to higher incomes and, consequently, demand.
Central Bank analysts believe that economic growth can be considered sustainable.