There is a potential for reducing the key rate of the Bank of Russia, as the head of the Central Bank Elvira Nabiullina admitted, but it is unlikely that the regulator will do this in the coming months.
The key rate of 16% per annum may remain at least until the fall of 2024, Natalya Milchakova, leading analyst at Freedom Finance Global, is sure, writes Banki.ru.
She added that the Central Bank may make a reduction, most likely in the second half of this year. But this requires a stable trend towards reducing inflation. Milchakova believes that at the Central Bank meeting in February the current key rate will not be changed.
Earlier, the head of the Central Bank also noted that the regulator could reduce the rate in the second half of the year. And Deputy Chairman of the Central Bank Alexey Zabotkin assured that the current level of the key rate will last for some time, and then a trend towards a gradual decrease will begin. There were no specifics from the Central Bank.
Let us remind you that the Central Bank will increase the key rate from the summer of 2023. Due to the weakening of the ruble, the Central Bank is forced to constantly increase the rate level. By December last year, the maximum increase in the indicator since April 2022 was up to 16% per annum. Such actions of the Central Bank are associated with the instability of the Russian currency.
Source: Rosbalt
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