Nabiullina admitted the beginning of the period of key rate reduction in 2025

If Russia does not face additional economic shocks, the Central Bank (CB) will be able to start reducing the key rate as early as 2025. This was announced by the head of the regulator Elvira Nabiullina on November 19.

She pointed out that such tactics of the Central Bank will allow to reduce inflation in the country to the level of 4.5-5% in 2025, after which to stabilize this indicator at about 4%.

"And as it slows down, we will also consider a gradual reduction of the key rate. If, of course, no additional shocks will not be external, the reduction will begin next year," - said Nabiullina at the plenary session of the State Duma.

Earlier, on November 12, representatives of the Bank of Russia denied the statement of Duma deputy Maria Prusakova about the alleged plans of the Central Bank to start reducing the key rate in the spring of 2025. Prusakova noted that Nabiullina at a meeting with the CPRF faction had allegedly promised that the key rate would decrease from March and gradually reach the level of 2023. However, the Central Bank of the Russian Federation said that the words of the deputy do not correspond to reality.

Before that, on November 11, financial expert Alexei Krichevsky told Izvestia that the Central Bank's Board of Directors may raise the key rate again in December. In turn, Elman Mehtiyev, founder of the Kredchek service, noting the Central Bank's influence on inflationary processes, specified that there is a decrease in the rate of retail lending and its role in the acceleration of inflation. However, there is also the effect of previously postponed decisions, including the indexation of the cost of housing and utilities services, he added.

The Central Bank of Russia's Board of Directors raised the key rate to 21% on October 25. The head of the regulator Elvira Nabiullina said that during the meeting three options were considered: to raise the rate to 20%, to 21% and higher. She specified that the option of maintaining the rate level was not considered.