MOSCOW, July 3 /TASS/. Head of VTB Bank Andrey Kostin expects the Bank of Russia to raise its key rate in July.

"We do not expect the key rate to be lowered. It will most likely increase in July," he said in an interview with Rossiya-24 TV channel.

Kostin noted that, contrary to earlier forecasts, banks do not see a significant reduction in the key rate. "However, in the future, we hope that the rate will go down," he concluded.

The next meeting of the Board of Directors of the Bank of Russia, at which the key rate will be considered, is scheduled for July 26. At the meeting on June 7, the regulator left the key rate unchanged at 16% per annum, but signaled its possible increase.