MOSCOW, January 16. /TASS/. Russia’s Central Bank may reduce the key rate by 0.25 percentage points to 4% at its next meeting in February, Chairman of the State Duma’s Financial Markets Committee Anatoly Aksakov told TASS on the sidelines of the Gaidar Forum.

"If the ongoing trend persists in February, I assume that the Central Bank may cut the key [rate] by 0.25 percentage points and fix it at the level of 4%, with all depending on the environment on the oil market, the pandemic situation and, consequently, on how the macroeconomic situation will unfold in all leading countries: the US, Europe and China," he said.

Aksakov does not rule out that the key rate in Russia may go down even below 4% if deflation factors prevail over inflation factors, he said, adding though that it is unlikely.

A surge of inflation occurred at the end of last year, which was particularly connected with a decline in the ruble, the State Duma member explained. Moreover, inflation expectations of both businesses and households increased in late 2020. Meanwhile, the situation may change now affected by the ongoing strengthening of the Russian currency, growth of the oil price and other factors.

The Gaidar Forum in an annual international research and practical conference in the economic field that has been held since 2010. It brings together renowned experts, government representatives, public and political figures, and business leaders from different countries. The event is traditionally co-organized by the Russian Presidential Academy of National Economy and Public Administration, the Gaidar Institute for Economic Policy, and the Association of Innovative Regions of Russia (AIRR). TASS is a general information partner of the forum.