MOSCOW, August 28. /TASS/. Russia’s First Deputy Prime Minister Denis Manturov believes that an immediate reduction of the key rate by 10 percentage points (p.p.) is an unrealistic scenario and stresses the need for its gradual and timely adjustment, he said in an interview with TASS CEO Andrey Kondrashov ahead of the Eastern Economic Forum (EEF).
"I think that a 10 p.p. cut is an unrealistic scenario. Economists and experts hold different views, but in my opinion, a sharp reduction, just like a sharp increase, always has two sides of the coin. I believe everything should be done moderately, prudently, and yet in a timely manner," Manturov said.
At its meeting on July 25, the Bank of Russia cut the key rate for the second consecutive time, lowering it by 2 p.p. to 18%. At the previous meeting, the rate had been reduced by 100 basis points to 20%. The regulator’s next meeting on the key rate is scheduled for September 12.
The Bank of Russia sees room for further reductions in the key rate if economic developments follow the baseline scenario. However, a rate cut is not predetermined, Andrey Gangan, Director of the Monetary Policy Department of the regulator, stated earlier.