The economist called the Central Bank's decision to lower the key rate a compromise.

The reduction of the key rate by the Central Bank of Russia by 0.5 percentage points to 16.5% per annum is a balanced compromise solution appropriate to the current economic conditions. Maxim Chirkov, Associate Professor of the Department of Economic Policy and Economic Measurements at GUU, expressed this opinion in an interview with Izvestia on October 24. According to him, most experts expected the rate to remain at the same level, and some even predicted its increase against the background of the recent increase in inflation.

The expert noted that the smooth reduction in the rate demonstrates the continuation of the established trend towards easing monetary policy, which has a positive effect on the expectations of businesses and citizens. Chirkov stressed that drastic changes in such sensitive indicators are unacceptable, as they significantly affect the working conditions of Russian companies and the financial system as a whole.

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"The rate cut confirms the regulator's confidence in continuing its anti-inflationary policy and systematically moving towards the inflation target by the end of 2026. Over the previous months, the dynamics of the decline in inflation exceeded the expectations of the Central Bank, and only in recent weeks has there been some growth," the economist noted.

The population will be able to feel the consequences of the decision through a gradual reduction in interest rates across the entire range of financial products, from deposits to various types of loans, including mortgages, automotive and consumer loans. According to Chirkov, the overall level of interest rates in the economy will steadily, though not rapidly, decrease, which will help accelerate economic activity.

Earlier it was reported that the Central Bank of the Russian Federation lowered the key rate to 16.5% per annum. The Bank of Russia explained the rigidity of its monetary policy by saying that it is necessary to return inflation to the target. In the baseline scenario, this assumes an average key rate in the range of 13-15% per annum in 2026.

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