The head of the Central Bank of the Russian Federation is likely to again reduce the key rate

President of the Central Bank of the Russian Federation Elvira Nabiullina hinted that the financial regulator (the Central Bank of the Russian Federation) may continue to reduce the key interest rate, but the situation is changing.

“We see opportunities for further reduction of the key rate, but, of course, the situation here is very unstable,” the official said today at the RPP conference.

She pointed out that the Central Bank does not see the risks of a deflationary spiral in Russia, and said that “the decline in consumer prices is a correction after a sharp increase that took place in late February and early spring.”

Earlier this month, the Central Bank of Russia decided to cut its key interest rate by 1.5 percent to 9.5 percent per annum.

Thus, the Russian Central returned the level of the key interest rate to the level that was in February last year before the introduction of Western sanctions.

Source: RIA Novosti

Related Stories