The key rate of the Central Bank remains "an anchor" for other money market rates, head of the Central Bank Elvira Nabiullina told a banking forum.
"It is important that in the course of transition to a structural surplus of liquidity, we see that the easing of monetary policy is happening virtually automatically. And the key rate becomes a benchmark for the rates which are applied to investment of funds not fundraising. This change in the role of the key rate is essentially equivalent of its reduction. But the key rate - and I would like to stress this - in any case remains "the anchor" for other money market rates," she said.Translation: The Central Bank of Russia is now less concerned with setting the interest rate to stabilize the currency and ameliorate outbound capital flow. The lower rate will encourage domestic investment.