Bank of Russia allows further reduction in key rate

The Bank of Russia has confirmed a signal for further steps on the key rate: it allows its further reduction at the next meetings, Report informs citing Russian media that the first deputy chairman of the regulator, Vladimir Chistyukhin, said.

"We allow a further reduction in the key rate at the next meetings," he said during a meeting of the government commission to improve the stability of the Russian economy in the face of sanctions.

On April 8, the regulator urgently reduced the key rate to 17% per annum from 20% and allowed the possibility of its further reduction at the next meetings. The Central Bank then indicated that annual inflation in the country will continue to grow due to the base effect, but weekly data indicate a significant slowdown in the current pace of price rise.

On Monday, Central Bank Chairwoman Elvira Nabiullina said that at the next meeting she would assess the situation in the economy on the key rate, adding that she was aware of the need for affordable rates on loans to the economy.