Central Bank reduced the key rate

The Central Bank of the Russian Federation at a meeting of the board of directors on March 24 reduced the key rate to 9.75% per annum, follows from the regulator .

As stated in the message, the decision on the rate of the Central Bank made based on the dynamics of inflation, which is reduced faster than predicted; And also taking into account economic activity, the restoration of which is faster than expected.

“The Bank of Russia will evaluate the further dynamics of inflation and the economy regarding the forecast and allows the possibility of a gradual reduction in the key rate in the II-III quarters of the current year,” the regulator said.

Thus, the Bank of Russia did not justify the forecasts of most analysts who talked about maintaining a rate at the level of 10% per annum.

As transmitted by RBC, they spoke about the preservation of the rate in Alfa Bank, Renaissance Capital, Yunikredit, Raiffeisenbank and several other financial organizations.

CITI analysts suggested that the Central Bank may give a signal at the next meeting of the board of directors on April 28, Write Vedomosti.

Vladimir Tikhomirov from the BCS did not agree with most forecasts and spoke about the possibility of reducing the rate by symbolic 0.25 percentage points. According to him, "maintaining an excessively high rate would be a signal that the Central Bank is afraid to destroy a fragile balance." In addition, Tikhomirov noted, the longer the Central Bank holds the rate, the faster it will have to reduce it

In mid -March, Russian President Vladimir Putin warned of the risks of an “unreasonable and premature” decrease in the key rate.

According to him, this will lead to “inflation, weakening the ruble, and as a result - to a decrease in investment capabilities,” TASS said . As Putin said, the issue of betting requires balanced decisions: "Here a rush can be very expensive."

In 2016, the Bank of Russia twice reduced the key rate - in June and September. To combat inflation in 2014, the regulator increased the indicator to a record 17% per annum.