In December-January, we reduced rates on these instruments, introduced new types of operations, and increased the frequency and allotment amount of foreign currency provision. In late 2014, the allotment amount of foreign exchange liquidity provision was about 20 billion US dollars and currently exceeds 30 billion US dollars. In January 2015, despite persistently low oil prices, complicated geopolitical situation, and Russia’s downgraded sovereign rating, the exchange rate volatility decreased and inflation expectations showed the first signs of stabilisation. This means that the result we expected when raising the key rate has been largely achieved. At the same time, the leading indicators started to show the beginning of considerable fall in aggregated demand and cyclical economic slowdown. Therefore, as opposed to 2014, the economic situation in 2015 started to exercise additional anti-inflationary pressure. This enabled the Bank of Russia to reduce the interest rates from 17% to 15 %. The consequently published data for January 2015 confirmed out estimates. In January 2015, the economic activity started to slow down. Temporary surge in consumer demand in December 2014 changed into a drop. Decline in investments intensified. Both consumer and producer sentiments deteriorated. Inflation accelerated sharply, but this dynamics is largely explained by the accelerated pass-through effect of the exchange rate on prices. Therefore, monthly inflation started to decline in February. We base our monetary policy decisions not only on the information about existing economic trends, but primarily on the forecasts of economic situation. Detailed and revised forecast will be published tonight as part of the Monetary Policy Report.

William C Dudley: What does interconnectedness imply for macroeconomic and financial cooperation? Remarks by Mr William C Dudley, President and Chief Executive Officer of the Federal Reserve Bank of New York, at the Swiss National Bank-International Monetary Fund Conference, Zurich, 8 May 2012. *  *  *  It is a pleasure to have the opportunity to speak here today. As I see it, the complex interconnections that exist between the real and financial sectors of the economy, both within and between countries, have important implications for both macroeconomic and regulatory policy. In particular, cross-border coordination in both realms is warranted. Often, macroeconomic and regulatory policies are too narrow in their focus. At times, policies are designed with the goal of being “best” at the national level. Yet the resulting mix of national policies is distinctly inferior to what a well-coordinated global regime could have produced. Today I will discuss two important challenges that go along with living in an interconnected world. The first is how to define what aspects of macroeconomic policy or regulation require greater international coordination and harmonization. Some issues can be handled effectively at a national level, but the crisis has demonstrated clearly that many can not. The second challenge is how to make international coordination workable so that progress can be made in a timely manner while still preserving sufficient autonomy for countries to fashion policies to suit their particular idiosyncratic structures.