The economist admitted the possibility of a small reduction in the key rate in July

If inflation in Russia continues to decline, the Central Bank will lower its key rate in July, but not much. Anatoly Bazhan, Head of the Economic Research Department and Chief Researcher at the Institute of Europe of the Russian Academy of Sciences, expressed this opinion on Friday, July 4.

"It's hard to say by how much, but if inflation decreases significantly, then, of course, the Central Bank will certainly lower the rate. <...> I think it won't be more than two percent," the economist said in an interview with Lenta.Ru .

According to the expert, the current inflation in Russia is largely related to world market prices, because the dynamics of prices for foreign goods that enter the country affects inflation within the Russian Federation.

"So far, the dynamics of inflation in the global market has been quite high, somewhere around 6%. It is necessary to predict what will happen in July with the prices of the world market. The prices of the world market still largely depend on the international situation. The build—up of military potential, for example in Europe, also has an impact on world market prices," Bazhan concluded.

Set up for the best: The authorities are preparing tax breaks for developers

What measures are we talking about and what does the business expect?

The day before, the head of the Central Bank of the Russian Federation, Elvira Nabiullina, said that the Bank of Russia would consider lowering the key rate in July unless unforeseen circumstances appeared, according to the website. kp.ru .

She also stressed that the Central Bank sees a slowdown in inflation, "and in a stable component" and "faster than expected in the previous forecast," IA Regnum reports.

Nabiullina noted that making any decisions will depend on what data is received by that time, RT reports.

Earlier, on July 2, the head of the Central Bank said that the slowdown in inflation in Russia is going faster than expected, according to 360.ru . According to her, if the indicators show a faster slowdown in the economy, then the regulator will have room for a faster rate cut.