MOSCOW, December 18. /TASS/. The Bank of Russia may opt for a more substantial cut in the key rate on December 19 than previously forecast, lowering it to 15.5% per annum, Russian Union of Industrialists and Entrepreneurs President Alexander Shokhin said in an interview with NTV.

"Frankly, we are expecting a rate cut not of 0.5 percentage points, but a full 1 percentage point. Why? Because inflation began to slow at the end of the year at a faster pace than had been projected back in September. In September, inflation was expected at 7-7.5%, whereas now it is already below 6%. But if inflation is at 6%, then a 16.5% rate is excessive. Therefore, a reduction of 1 percentage point would be a very modest step toward lower inflation. We believe that a more aggressive cut is indeed possible," Shokhin said.

According to him, the problem for businesses lies not only in the level of the key rate itself.

"The Central Bank is conducting fairly active and systematic work. The rate is being reduced, while regulatory requirements are being tightened. We are probably now at a turning point where the rate may decline slightly, but due to tighter regulatory requirements for borrowers — through stricter requirements for banks — this may not affect the attraction of funds or expand lending opportunities for investments. About 40% of companies, according to our surveys of the Union’s members, report that they are experiencing problems with non-payments by counterparties. This is a high figure — the highest since 2021," Shokhin added.