The expert spoke about the stock market's reaction to the key rate cut

The Moscow Exchange index reached three-week highs by the time the Central Bank of Russia announced the rate. The market was rising in anticipation of the regulator's reversal, and the players' hopes were justified. Mikhail Zeltser, an expert on the stock market at BCS World of Investments, told Izvestia on June 6.

"At the moment, speculatively minded players who have previously bought shares for such an outcome can start taking profits "after the fact." However, this will only delay the growth of the market locally — in the medium and long term, stocks are seen as more expensive than current ones," he explained.

The summer benchmark, according to Zeltser, is the return of the benchmark by 3,000 points, the annual index of the Moscow Exchange by 3,200 points, plus dividends.

"Bank stocks and securities of accredited companies may be stronger than the market in the future — for the former, interest costs are reduced, and for the latter, debt pressure is reduced," the expert said.

As for official loan bonds (OFZ), they have been in high demand in recent weeks, according to Zeltser.

"Market participants bought bonds in advance in anticipation of the start of a cycle of easing and rate cuts. The prices of securities were rising, and their yields were falling," he said.

The expert added that on an annual basis, the return on investment in OFZs may exceed the return on deposits, and it is not too late to fix high rates for a long-term investment perspective.

Minus to plus: banks will lower loan rates after the Central Bank's decision

On June 6, the regulator unexpectedly reduced the key rate for the first time in three years to 20%

Earlier in the day, the Central Bank of Russia lowered its key interest 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.

In general, the establishment of a high key rate in Russia has led to a significant slowdown in inflation, said the head of the regulator, Elvira Nabiullina. The economist added that high key interest rates have become one of the main factors in strengthening the ruble.