Bank of Russia may consider cutting key interest rate

The Central Bank of Russia (CBR) will evaluate the advisability of lowering its key interest rate, Kirill Tremasov, adviser to the CBR chairman, has said, Interfax reports.

According to him, the regulator may take a pause in April.

“The CBR has been lowering the key rate for a long time. At the April meeting… proposals for a pause may also be discussed,” Tremasov said during a communication session.

He identified the escalation in the Middle East as a pro-inflationary risk and noted that the CBR’s decision will also be influenced by inflation data for March, which Rosstat will release on April 10.

On March 20, the CBR’s board of directors lowered the key interest rate for the seventh consecutive time, setting it at 15% per annum. CBR Chair Elvira Nabiullina has said that the regulator could reduce the key rate faster under certain conditions, such as a “sharp economic downturn.” The next CBR board meeting is scheduled for April 24.

By Vugar Khalilov