MOSCOW, April 2. /TASS/. The basic forecast of the Bank of Russia assumes room for reducing the key rate this year, the regulator’s Deputy Governor Alexey Zabotkin said.

"Our [baseline] forecast suggests room for a key rate decline this year," he said.

Earlier on April 1, the Bank of Russia indicated conditions whereupon key rate slashing is possible, according to the summary of discussions of the relevant issues. "Key rate reduction requires further stable slowdown of current inflation; cooldown of consumer lending and consumer activity; lowered toughness of the labor market; and lack of materialization of pro-inflationary risks from the side of the budget or external conditions," the regulator said.

On March 22, the Board of Directors of the Bank of Russia kept the key rate at 16% per annum, noting that current inflation pressure is gradually weakening, but remains high. The next meeting is scheduled for April 26.