Likelihood of key rate hike in future has decreased - Nabiullina

MOSCOW. March 21 (Interfax) - The Central Bank of Russia does not rule out the possibility of raising the key rate if the pace and sustainability of the fall in inflation are insufficient, but the likelihood of a hike has decreased, Central Bank Governor Elvira Nabiullina said at a briefing following the meeting of the CBR's board of directors at which the key rate was kept at 21%.

"Current price growth is gradually slowing. This is largely the result of our tight monetary policy. The decline in inflation has also been influenced by improved market sentiment and the strengthening of the ruble," she said.

"Nevertheless, price pressure remains high, and inflation expectations are elevated. This means that we need to maintain tight monetary conditions for an extended period," Nabiullina said.

"Our future decisions will depend on whether the pace and sustainability of the fall in inflation are sufficient to return it to 4% in 2026," she said.

"If they are insufficient, we may take an additional step to raise the rate, although the likelihood of this has decreased," she said.