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Russia Rules Out QE, Vows Rate Cuts If Inflation Risks Wane

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Russia’s central bank will abstain from quantitative easing and rely on interest rates to boost the recession-bound economy, Governor Elvira Nabiullina said.

The central bank will continue to reduce its benchmark rate, now at 14 percent, if inflation risks continue to abate, Nabiullina said at the annual meeting of the Association of Russian Banks. The association, which counts 80 percent of the country’s lenders as members, had proposed a quantitative easing program to help the economy, which is suffering under U.S. and EU sanctions over Ukraine and a decline in oil prices.