The Bank of Russia (CBR) allows the option of reducing the key rate by 1 percentage point (100 basis points) at the next meeting in June, Chairman of the Central Bank Elvira Nabiullina. Recall now the key rate set by the regulator at the level of 5.5%.”At the last meeting of the Board of Directors we considered the possibility of a rate cut by 100 basis points. I admit that if the situation will develop, as it is now, the option of reduction of 100 basis points will also be considered, of course, among other alternatives,” said MS Nabiullina at a press conference on Friday (quoted by Reuters).According to her, the decision to change rates will be taken into account that the annual inflation rate remained close to the target of 4%. “We will assess all aspects of all the current situation, our forecasts for the dynamics of the economy, inflation… Our trajectory of the key interest rate will be determined taking into account the fact that inflation was near 4%,”— said the Chairman of the Central Bank.On 24 April, the Bank of Russia lowered the key rate by 50 basis points to 5.5% per annum. Thus Nabiullina has not excluded that the Central Bank may begin to reduce the rate of “larger increments than before.” Before the regulator six times in a row has lowered the rate. The rate increase in a pandemic coronavirus COVID-19 Bank of Russia Chairman called unlikely. Read more on the latest rate reduction — in the material “Kommersant” “, the Virus-killing inflation”.
