VTB deputy chair expects Russian Central Bank to cut key rate 50 bps to 9% pa on Friday

MOSCOW. July 19 (Interfax) - The Central Bank of Russia (CBR) could cut the key rate by 50 basis points to 9% per annum, Anatoly Pechatnikov, Deputy Chairman of the VTB executive board, said during an interview with Rossiya 24 TV channel.

"We expect a cut. My personal estimate is that it decreases 50 basis points, and I really want to believe this," Pechatnikov said.

The CBR's current key rate is 9.5% pa. The next meeting of the regulator's board of directors regarding the key rate is on July 22.

"I would very much like the mortgage rate to become single-valued this year, as it was in 2021 and 2020. Even in the most difficult pandemic year, we managed to lend at a rate below 10%," Pechatnikov said.

The CBR at its board meeting on July 10 cut the key rate by 150 bps to 9.5% pa, preceded by three rate cuts of 300 bps each, with one on May 26 to 11% pa, one on April 29 to 14% pa, and one on April 8 to 17% pa. The CBR hiked the key rate sharply from 9.5% pa to 20% pa on February 28 in response to rising devaluation and inflation risks. The regulator maintained the key rate at 20% per annum in March.