7 Jun 2024 17:20

Siluanov expecting reduction in inflation and key rate in H2 2024

ST. PETERSBURG. June 7 (Interfax) - Russian Finance Minister Anton Siluanov hopes that conditions will emerge allowing for a reduction in the key rate in the second half of this year.

"The measures we are taking as part of the budget - we are preparing a balanced budget, we are now considering tax proposals - they still give the Central Bank reasons to maintain the rate without raising it. We hope inflation will decrease in the second half of the year and so will the rate," he told Izvestia.

The day before, he said that inflation in the second half of the year "will definitely slow down."

The Ministry of Finance is linking its further actions on the securities market to the Central Bank's decision on the rate on Friday. The ministry has refrained from holding auctions for the placement of OFZs for two weeks in a row, citing the need to stabilize the market. Commenting on further steps, Siluanov noted on Thursday that "based on tomorrow's [Central Bank] decision, we will also decide on short-term policy in the borrowing market." "Everyone is waiting for the Central Bank decision; we'll see what it will be, and then we will make a decision regarding auctions," he said.

The Russian Central Bank's Board of Directors kept the rate at 16% per annum at its meeting on Friday.