The expert spoke about the impact of the key rate cut on the economy

The reduction in the key interest rate will contribute to the further development of the Russian economy due to the reduction in the cost of loans. Economist Alexey Rodin told Izvestia about this on Friday, July 25.

"This will greatly help the economy for the simple reason that companies that, in principle, live off loans, get loans, <...> it will be much easier for them to service this loan, because loan rates will decrease," the expert explained.

According to him, deflation was recorded in the country in July, and lower prices mean that "the policy of the Central Bank of the Russian Federation is working."

"The key rate is being raised precisely in order to combat inflation and return it to normal levels, for us it is 4%," Rodin stressed.

Another positive aspect of the rate cut, the economist said, would be to increase the availability of loans for ordinary citizens. However, the benefit of deposits will decrease.

"But, again, deposits are less attractive, and slowly money [from them] will flow into the real sector of the economy, and this will be a plus for our economy," the expert concluded.

Waiting for the key: the dynamics of the ruble exchange rate will be determined by the outcome of the Central Bank meeting

Most experts predict a rate of no more than 80 rubles per dollar, even taking into account the reduction in the key rate

On the same day, the Central Bank of the Russian Federation lowered its key rate to 18% per annum. It was noted that further decisions on the key rate will be made depending on the sustainability of the slowdown in inflation and the dynamics of inflation expectations. According to the Central Bank's forecast, annual inflation will decrease to 6-7% this year, and return to 4% in 2026.

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