Central Bank of Russia confirms plans to continue cautious approach to decisions on key rate

MOSCOW. Aug 8 (Interfax) - The Central Bank of Russia plans to continue its cautious approach to reaching decisions on monetary policy, Central Bank Deputy Governor Alexei Zabotkin said.

"We plan to proceed cautiously when reaching further decisions on the key rate, analyzing all incoming information. We particularly plan to assess adjustments in monetary conditions, including trends in lending and the effect on inflation," Zabotkin said in response to questions on the regulator's Telegram channel.

The CBR in July lowered the forecast for the average key rate to 18.8%-19.6% in 2025 from 19.5%-21.5%. The average key rate is projected within 16.3%-18% as of July 28 until the end of 2025 after having been forecast within 18.8%-21.8% as of April 28. The regulator has lowered the rate outlook to 12%-13% in 2026 from 13%-14% and has maintained it within 7.5%-8.5% in 2027.

The CBR cut the key rate by 200 basis points to 18% per annum at its meeting on July 25.