18 May 2022 12:33

Siluanov waiting for Russian Central Bank to cut key rate amid decelerating inflation

MOSCOW. May 18 (Interfax) - Lowering interest rates could assist business development, and the Russian Finance Ministry is waiting for the corresponding decisions from the Central Bank of Russia (CBR), Finance Minister Anton Siluanov said at the New Knowledge marathon.

"The most important matter is not subsidizing [interest rates], though rates need to be cut. Moreover, we are all looking to and counting on the Central Bank. Every week, I look at inflation for the previous week; it is decreasing, and we are waiting for decisions from the Central Bank that would assist us all in developing business, namely by lowering the interest rate," Siluanov said.

The Central Bank cut the key rate by 300 basis points to 14% per annum on April 29, prior to which the regulator had also cut the key rate by 300 bps to 17% pa on April 8. The CBR raised the rate sharply from 9.5% pa to 20% pa on February 28 in response to growth in devaluation and inflation risks. The regulator retained the key rate at 20% following its March meeting.