Central Bank still forecasting long-term rate neutrality of 5%-6%

MOSCOW. Feb 20 (Interfax) - The Central Bank of Russia still estimated the long-term neutral rate of 1%-2% in real terms which, with an inflation target of near 4%, corresponds to a nominal neutral rate of 5%-6%, the regulator said in a monetary policy report.

"The estimate of the long -term neutral rate during the period of economic restructuring associated with increased uncertainty. There are factors that could influence both an increase and decrease. The Bank of Russia will evaluate the total effect of these factors as data is gathered," it said.

The Central Bank estimates an average key rate of 5%-6% in 2025.