Central Bank of Russia will cut rates as inflation slows, current deceleration exceeds expectations - Nabiullina

ST. PETERSBURG. June 19 (Interfax) - The Central Bank of Russia will reduce its key rate as inflation slows in Russia, with the current deceleration happening faster than the regulator anticipated, Central Bank Governor Elvira Nabiullina said at the 2025 St. Petersburg International Economic Forum (SPIEF 2025).

"We will cut rates as inflation declines. It is currently slowing down, even faster than we expected, and inflation expectations will decrease accordingly - this is how it should work," Nabiullina said.

Even with rate cuts, deposits will remain attractive for the public since inflation will also be slowing, she said.

In June, the CBR cut its key rate by 100 basis points to 20% per annum, contrary to most market participants' expectations.

Russia's annual inflation, based on weekly Rosstat calculations as of June 16, slowed to 9.6% from 9.73% on June 9 (9.88% at the end of May) when calculated using weekly dynamics (the Central Bank's methodology), and to 9.59% from 9.71% on June 9 when calculated using average daily data for June 2024 (the Economic Development Ministry's methodology).