CBR could consider options to hike key rate by 1-2 ppts in July, other options depend on data - Deputy Governor Zabotkin

ST. PETERSBURG. July 4 (Interfax) - The board of directors of the Central Bank of Russia (CBR) could consider options to hike the key rate by 1-2 percentage points during the regulator's meeting in July, and the need to consider other options would depend on incoming data, Central Bank Deputy Governor Alexei Zabotkin said.

"The possibility and advisability of raising it [the key rate] to 17% [per annum] or even 18% was discussed at the meeting in June. These alternatives could most likely also be discussed at the meeting in July. Whether they would need to be expanded depends on the incoming data," Zabotkin said during an interview with Rossiya 24 TV.

The CBR previously said that it could hike the key rate substantially in July if the regulator is certain that the alternative scenario could materialize. Central Bank Governor Elvira Nabiullina explained that a substantial hike in the key rate is more than 1 ppt.