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Кey rate may be brought back down to 7-7.5% assuming inflation reaches 4%
The key rate of the Central Bank of the Russian Federation may go down back to 7-7.5% when inflation reaches the target of 4%, said Bank of Russia Deputy Governor Alexey Zabotkin discussing the Bank’s annual report at the meeting of the Just Russia party’s faction in the State Duma.
“If we recall 2018-2019, when the economy was relatively stable and inflation fluctuated around 4%, the key rate was about 7-7.5%. Probably, it will return to these figures when inflation reaches 4%,” Zabotkin said.
He recalled that in the first wave of sanctions, the key rate of the Bank of Russia in December 2014 was increased to 17% against the backdrop of high inflation, but it gradually decreased with the reduction of risks.
“Now the story is different. I do not call for considering the present situation absolutely similarly, but our task is surely to reduce the rate adequately as inflation falls. If inflation goes down, the rate will follow it,” Zabotkin said.