CBR Explains Risks of Hasty Rate Cut

© Сгенерировано при помощи ИИ

By quickly lowering the key interest rate, the economic bloc of the Russian government would have to "erase all the progress made" in the fight against inflation. According to forecasts by the head of the Central Bank, Elvira Nabiullina, it will approach the target of 4% in the second half of 2026. The chairman of the regulator made this statement while speaking at the State Duma.

Elvira Nabiullina explained that it is impossible to quickly reduce the key interest rate due to the risk of losing the progress already achieved.

"Our assessment shows that a hasty reduction in the rate would erase all the progress made. We would have to go through the entire path again," she said.