The Central Bank warned about the risks of lowering the key rate to 3%

The Bank of Russia has published a study in which it warned of the serious consequences of a sharp reduction in the key rate to 3%. According to experts, such a step can cause hyperinflation and reduce the country's GDP.

The scenario modeled by the regulator assumes a reduction in the rate from the current 15.5% to 3% "to further stimulate the economy" with inflation at 6%. In the short term, this really supports economic growth and boosts GDP. However, the effect turns out to be unstable: within three years, the economy slows down, and then real GDP losses are recorded.

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