The Central Bank of Russia (CB) may move to reduce the key interest rate with the continued slowdown in inflation. The head of financial regulation Elvira Nabiullina stated this at a press conference, a socialbites.ca correspondent reported.
“The fact that inflation starts to decline steadily and we see that it is decreasing in line with our predictions may actually be a signal for an interest rate cut. We cannot say now when this will happen,” Nabiullina said.
According to him, according to the Central Bank’s average interest rate forecast for 2025, a rate cut is possible next year.
October 25 Central Bank of the Russian Federation raised Key rate increased from 19% to 21%. Representatives of the financial regulator attributed this decision to the current level of inflation in the state, which is above forecasts.
On the same day, the Central Bank of Russia changed Average key interest rate forecast for the period from 2024 to 2026. While the average key interest rate forecast for the current year was previously 16.9-17.4%, this forecast has been increased to 17.5%. Indicators for 2025 and 2026 changed from 14-16% to 17-20% and from 10-11% to 12-13%, respectively.
previously economist appreciated The reaction of the ruble to the new interest rate.
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Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.