All news
Kostin: The Central Bank may raise the key rate this year to 21%
Kostin: Central Bank may raise interest rate to 21% this year
According to him, a gradual reduction will begin in the second half of 2025.
VTB Chairman Andrey Kostin expects the central bank to raise interest rates to 21% this year, with a gradual reduction expected to begin in the second half of 2025.
"In the first half of the year, there will probably be a fairly tight monetary policy. But we expect a gradual decline, as well as inflation, from the second half of the year," Kostin said on the Rossiya 24 TV channel (quoted by TASS).
Kostin also noted that although inflation in general is not falling quickly, this is not so scary.
"We expect inflation to be around 6% next year," Kostin added.
Last September, Russia's central bank raised its benchmark interest rate from 18% to 19% per annum. Regulators have signaled the possibility of raising interest rates at the Russian bank's next board meeting on October 25, as inflationary pressures remain high.