Experts spoke about the economic effect of lowering the key rate of the Central Bank of the Russian Federation

The reduction in the key interest rate by the Central Bank of Russia will have a significant impact on the economy, reviving key industries and reducing the cost of loans. Maxim Chirkov, Associate Professor of the Department of Economic Policy and Economic Measurements at GUU, shared this opinion in an interview with Izvestia on June 6.

"The beginning of the key rate cut is a fairly serious event that will affect all sectors of the economy. Of course, I would call this economic growth that we have in the first quarter such a restrained growth," Chirkov said.

According to him, reducing the key interest rate will revive many industries, for example, the financial sector, construction.

"The very fact of the decline is important. It seems to me that the market and many industries will perceive such a reduction in the key interest rate in a positive way. If we talk about the financial sector, then, of course, this will entail lower interest rates on warehouses, lower interest rates on loans, and on all types of loans," Chirkov said.

Yulia Arkhangelskaya, Head of the Commercial Services Development Department at the Mangazeya development company, emphasized the positive effect on the mortgage market. She noted that a decrease of 1% is a good signal. In the near future, rates will drop to 21.5–23% per annum, and borrowers will be able to refinance loans.

Georgy Ostapkovich, director of the Center for Economic Research at the Higher School of Economics, called the Central Bank's decision "logical and expected," but warned that an immediate effect should not be expected.

"This is a positive signal, but there will be no drastic changes tomorrow. However, a new breakthrough is possible by the end of the year — the rate may drop to 17-18%," he concluded.

Three steps back: the market expects the key rate to decrease to only 19% by the end of 2025

When will the Central Bank start reducing it and why will it do it gradually

Earlier in the day, it was reported that the Central Bank lowered its key rate to 20% after a long period of tight monetary policy. According to the Central Bank, domestic demand still outstrips the possibilities of expanding the supply of goods and services, but the Russian economy is gradually returning to a balanced growth trajectory.