MOSCOW, July 25. /TASS/. The Bank of Russia assumes that the key rate may be lowered at individual meetings in 2025 by 100 and 200 basis points, Central Bank chief Elvira Nabiullina said at the press conference after the regulator’s Board meeting.

TASS has collected key statements of the Governor of the Bank of Russia.

Key rate

The Bank of Russia should move cautiously when making next decisions on the key rate. "It is the tough monetary policy underlying inflation slowdown and the return of the economy to more balanced growth," Nabiullina said.

The Central Bank assumes that the budget rule will be performed. "Adjustment of the key rate of path may be required if budget plans change."

The regulator has not considered keeping the rate at the meeting today. Key rate lowering by 100 and 200 basis points were discussed in detail.

The Central Bank will be ready to adjust the rate path in case external conditions deteriorate dramatically.

Key rate lowering will be in a way to prevent a new round of inflation.

Inflation and price growth

"The unemployment remains record low and the workforce shortage remains the factor of inflation acceleration."

The path of returning inflation to the 4% target has not been completed yet.

The return to the inflation target anticipates steady anchoring of inflation at a low level, other than several months of low inflation.

Administrative regulation of prices is a deadlock.

Inflation expectations of households are quite material and the population makes financial decisions on their basis.

Russian economy and sanctions

Investments in the Russian economy will continue growing but at a smaller pace than during the last two years.

The practice and the experience showed that the Russian financial sector is rather resilient to sanctions.

Deposits will remain attractive for households during a long period of time so far.

The regulator does not see any need to further capitalize major Russian banks.

Mortgage lending will hardly grow at the rates seen during the last two years.