12:13 GMT +323 September 2017
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    Chair of the Central Bank of Russia Elvira Nabiullina

    Bank of Russia Sees Potential for Further Key Rate Cuts - First Deputy Governor

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    The Bank of Russia will reduce the key rate in the long-term perspective, there is a potential for this, but the specific steps will depend on the macroeconomic situation at the moment when the decision is made, Bank of Russia First Deputy Governor Ksenia Yudayeva said Friday.

    ST. PETERSBURG (Sputnik) — On June 16, the Bank of Russia made a decision to cut the key rate from 9.25 percent to 9 percent. The reduction of the key rate in June was the third one in 2017, as the Bank of Russia reduced it in March and in April by 0.25 percent and by 0.5 percent respectively. In May, Bank Governor Elvira Nabiullina said that the key rate might be lowered to 6.5-7 percent by 2020 if the inflation stood at 4 percent.

    "Undoubtedly, we have some potential for reducing the key rate… When, how and in which way we will do it — we will discuss it at the next meeting of the Board of Directors," Yudayeva told reporters on the sidelines of the International Financial Congress in the Russian city of St. Petersburg.

    The next meeting of the Bank of Russia's Board of Directors regarding the rate policy is scheduled for July 28.

    The 26th International Financial Congress (IFC 2017), called "Finance for Development," was held in St. Petersburg on July 12–14. Over 1,200 business leaders, experts and officials have come together at the IFC 2017 to discuss the financial system’s contribution to the country’s economic development and measures that can be taken in this area.

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    key rate, Russian Central Bank, Elvira Nabiullina, Russia
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