MOSCOW, July 25. /TASS/. The Bank of Russia will be ready to adjust the key rate trajectory if external conditions deteriorate dramatically, the regulator’s Governor Elvira Nabiullina told a press conference following the board meeting on the key rate.

"In the event of some dramatic deterioration in external conditions of such a scale that will prevent us from achieving 4% inflation in 2026 through this currency channel, through a change in the exchange rate, we will surely be ready to adjust the rate trajectory," she said.

The strengthening of the ruble is mainly due to the effect of tight monetary policy, according to the regulator. The exchange rate can be considered as an independent factor influencing inflation when it is a consequence of external conditions such as fluctuations in exports, Nabiullina explained.

"However, this year's strengthening is, first of all, a manifestation of high ruble rates and tight monetary policy," she noted.

Earlier on Friday the Bank of Russia cut its key rate by 2 percentage points to 18% per annum, saying that inflationary pressures are declining faster than projected while domestic demand growth is slowing. The Central Bank will maintain monetary conditions as tight as necessary to return inflation to the target in 2026. Changes in the fiscal policy parameters may require an adjustment in the monetary policy pursued, the regulator said.