Nabiullina announced a slowdown in inflation in the Russian Federation faster than expected

The slowdown in inflation in Russia is proceeding faster than expected. This was announced on July 2 by the Chairman of the Central Bank of the Russian Federation, Elvira Nabiullina, during a plenary session at the Financial Congress of the regulator.

"We see a slowdown in inflation, a slowdown that is happening faster than our expectations, but so far this inflation is above target both in annual terms and at the current pace," she said, adding that the Central Bank also notes a decrease in tension in the labor market, but the deficit remains.

According to the head of the Central Bank, if the indicators show a faster slowdown in the economy, then the regulator will have room for a faster rate cut.

"Then, as we see, inflation will decrease below the target. And this will give us space for a faster reduction in the key rate than we, for example, predicted," she stressed.

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Alexey Zabotkin, Deputy head of the Bank of Russia, announced on June 30 that in July the regulator may consider a more significant reduction in the key rate. According to him, it is important to get confirmed data on a decrease in inflation to 4% — in this case, the rate cut will be more significant than in June.