The Bank of Russia could reduce the interest rate as early as February 2025, Anatoly Aksakov, head of the Financial Market Committee of the State Duma, told Lenta.ru.
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According to their forecast, the fall in consumer demand for goods after the New Year holidays will lead to a decrease in inflation, which will allow the Central Bank to begin to ease monetary policy.
“Inflation will begin to gradually decline; there is no demand, which means no price increase. <...> Inflation will begin to decline and interest rates on loans will also gradually decrease, perhaps as early as January. I admit that in February the Central Bank will begin to reduce the official interest rate,” Aksakov noted.
The day before, the Central Bank said that the regulator intends to keep the rate at a high level “until we defeat inflation.” The organization noted that “there has not been an avalanche of demand for a long time”, however, “a fairly stable high demand” persists, which, in conditions of limited production, causes inflation and a stable increase in prices.
Previously, the head of the monetary policy department of the Bank of Russia, Andrei Gangan, in an interview with Interfax, estimated annual inflation at the end of 2024 at between 9.6% and 9.8%. According to experts’ forecasts, inflation will peak in April 2025.
Author:
Anastasia Kossakovskaya
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
