Central Bank of Russia rate at current level cannot be changed by less than 1 pp - Tremasov

CHELYABINSK. Nov 7 (Interfax) - The Central Bank of Russia's key rate at its current level cannot be changed by less than 1 percentage point, Kirill Tremasov, adviser to the CBR governor, told Interfax.

"The rate change step depends on the overall level of the rate, but at this level we are definitely not considering changing the rate by less than one percentage point. One percentage point is the lowest possible step right now," Tremasov said on the sidelines of the Russian Economic Forum in Chelyabinsk.

"If you remember, when we were at 4.25% after Covid [the key rate was at this level], then [the standard] step was 25 basis points. So yes, these indicators are directly interdependent," he said.

The Central Bank hiked its key rate 200 basis points to 21% per annum in October, saying that it held open the possibility of raising the rate again at its next meeting.

The Central Bank considered raising the rate to 20%, 21% and 22% in October.

A rate increase at the next meeting in December is not inevitable, but the probability of one is very high, the Central Bank said in the summary of its October key rate decision. "Most discussants agreed that holding the key rate at the next meeting would be possible only in the event of a significant slowdown in sustainable inflation and the emergence of factors that could return inflation to its target more quickly. So far, there are few signs of this," the Central Bank said.