Russian Central Bank could lower rate, most likely in Q2, but many restraining factors remain - Nabiullina

MOSCOW. April 8 (Interfax) - Bank of Russia Governor Elvira Nabiullina again signaled about possibly starting to reduce the key rate, most likely in H2 2024, and warned about the risks of a premature easing of monetary policy.

"If inflation continues to slow steadily, we assume we will be able to start reducing the key rate this year, most likely in the second half of the year. There are many factors that make us cautious, including remaining high inflation risks," Nabiullina said at a joint meeting of State Duma committees.

"The experience of many countries shows that a premature reduction in rates can provoke a second wave of inflation, which would be more difficult to handle than the first," the head of the Central Bank said.

On March 22, the Board of Directors of the Bank of Russia decided to keep the key rate at 16% per annum.