Business leaders, as expressed by the RSPP chief, hold optimism for a potential reduction in the key rate.
Let's Talk Money: Bank of Russia Drops Key Rate
Exclusive Scoop: Business bigwigs are crossing their fingers, hoping the key rate takes a plunge. The head honcho at RSPP shared this sentiment, pointing out that a high key rate can take a toll on the economy.
Alexander Shokhin hammers the nail in the coffin, stressing on the financial strain some massive players in mining, trading, machine-building, and light industry sectors experienced while repaying their debts. The CB itself highlighted these struggles in its financial stability review, published on May 28, 2025.
The elephant in the room? No one's got a crystal ball to predict the key rate's kinematics on June 6. Some market whizzes, like Dmitry Pyanov from VTB, are not ready to swing the hammer, calling a rate cut a risky bet considering the inflamma-tory factors in play. He suspects the CB will keep the rate stable with a softened tone on June 6. On the flip side, VTB's CEO Andrei Kostin bets on a key rate cut at the upcoming Bank of Russia summit.
Philip Gabunia, Deputy Governor of the Bank of Russia, hinted at diverse options murmuring in the CB's mind for its June meeting. He emphasized, "The situation has shifted somewhat, and we have plenty to discuss." He continued, expecting an array of choices for both the rate and signals come June.
The last CB meeting took place on April 25. In typical Bank of Russia fashion, they kept the key rate stationary at a humdrum 21% for the fourth consecutive time. The bank played with its signals on the future trajectory of the key rate, removing mentions about the possibility of additional hikes. The bank observed that current inflationary pressure continues to dwindle, though it still reigns high, and the economy is inching towards a trajectory of steady growth.
Stay hooked with us on our Telegram channel @expert_mag
Business leaders, like Alexander Shokhin from RSPP, are anxiously awaiting the impact of the key rate on the economy, fearing a high key rate could exacerbate financial strain in various sectors such as mining, trading, machine-building, and light industry. Despite the uncertainty surrounding the key rate's future movement, the Bank of Russia's Deputy Governor, Philip Gabunia, hinted at diverse options under consideration for their upcoming meeting, suggesting possible adjustments in both the rate and signals.
