ST. PETERSBURG, February 20. /TASS/. The Russian Central Bank’s key rate may be reduced to 12% and lower by the end of 2026, Investment Strategist at VTB My Investments Alexey Kornilov said.

"The rate will decrease over the course of the year and it could equal 12% or lower by the end of the year," he said at the Russia Calling! Investment Forum in St. Petersburg.

VTB projects inflation to decrease to 5.3% by the end of 2026.

The Central Bank’s key rate currently stands at 15.5% per annum. Meanwhile the regulator has narrowed the average key rate forecast corridor until the end of 2026 from 13-15% to 13.5-14.5%. According to the regulator, the average key rate under the new forecast in 2027 will be 8-9% instead of the previously projected 7.5-8.5%. The forecast for 2028 was maintained at 7.5-8.5%.

At the same time, the Bank of Russia forecasts that annual inflation in the country will decline to 4.5-5.5% in 2026. Sustainable inflation will reach around 4% in the second half of 2026. In 2027 and beyond, annual inflation will remain on target.

The VTB Russia Calling! Investment Forum is being held in St. Petersburg for the second time on February 20-21. The forum's key topics include the impact of artificial intelligence, investment ideas for 2026, and capital management tools.