The Central Bank not only copes, but acts quite responsibly - Putin on the rate cut by 50 b.p.

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The Central Bank has cut the key interest rate by 50 basis points, while experts were expecting a reduction of 1%. Whether this half-percent reduction is sufficient or not was discussed by Russian President Vladimir Putin during the Direct Line session.

The President emphasized that, according to the law, the Bank of Russia operates independently and, in general, "not only copes, but acts quite responsibly."

"There are many controversial issues here related to the high key interest rate. The difference between the level of inflation, which, as I have already said, will be less than 6% by the end of the year, and the key interest rate, which remains at 16%. This difference between real inflation and the key interest rate is one of the lines of criticism directed at the Central Bank," noted the President.

He pointed out that one of the problems is the ongoing serious activity in the credit sector - the number of loans issued is almost not decreasing. Therefore, the Central Bank acts "in the highest degree cautiously" in order not to allow an inflation surge and not to have to "take steps in the opposite direction."

• Earlier, the Central Bank announced its decision on the key interest rate, reducing it by 50 basis points to 16% per annum.