The Central Bank of the Russian Federation explained the slow rate cut by working on long-term economic growth.

The key rate is decreasing slowly, as the Central Bank's goal is not a short—term breakthrough, but sustainable and long-term economic growth. This was reported on May 6 in the press service of the regulator.

"The Central Bank is already working on sustainable and long-term economic growth. Not for a short—term breakthrough, which is achieved by overexerting forces, but for stable growth, which continues from year to year," the Maks messenger says.

Such growth, according to the Central Bank, is possible only with low inflation. The regulator explained that high inflation indicates that the economy is overheating when it is growing to the point of exhaustion, using all available resources. With low inflation, growth becomes balanced, and resources are used optimally.

The Bank of Russia influences demand through the rate, aiming to reduce inflation to a stable 4%. According to the Central Bank, inflation expectations serve as an auxiliary element: the lower they are, the easier it is to cool the overheated demand.

Apply for a rate: the Central Bank is expected to reduce the key rate to 14.5 in April.%

Inflation turned out to be better than expected, and economic growth is worse — but the regulator is cautious.

On April 24, the press service of the Central Bank of the Russian Federation reported that the members of the board of directors decided to reduce the key rate by 50 basis points to 14.5% per annum. It was noted that the dynamics of domestic demand has now approached the possibilities for a potential expansion of the supply of goods and services.