MOSCOW, January 31. /TASS/. The Russian Central Bank will start reducing its key rate as stable slowdown of inflation to the 4% target emerges, the regulator said in answers to questions posted on its official Telegram channel.
"The rate’s reduction will be a response to stable slowdown of inflation to the target in the Central Bank’s forecasts. More moderate growth of demand is required for stable slowdown of inflation. Both the accumulated effect from the tightening of monetary policy considering all time lags and normalization of the budget policy in 2025 will contribute to it," according to a commentary on the question when the reduction of the Central Bank’s key rate may be expected.
The level of the key rate is defined by how the situation in the economy in various aspects unfolds, the regulator noted. "The Bank of Russia will rely on the data it receives: statistics, polls, other information related to the economy. By forming a unified picture from scattered data, we will assess the situation, make calculations, make projections, and take the key rate-related decisions," the Central Bank said.
The next meeting of the regulator’s board of directors on the key rate will be held on February 14.
The Bank of Russia projects annual inflation at 4.5-5% in 2025, and at 4% in 2026 and further on.