6/29, 11:27 AM (Source: TeleTrader)
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Bank of Russia: Key rate to go down with inflation

Bank of Russia (CBR) may reduce its key interest rate soon but that will depend on the volatility of the economic situation and on whether inflation will go down, the institution's chairwoman Elvira Nabiullina told the Russian Union of Industrialists and Entrepreneurs (RSPP) on Wednesday.

Nabiullina stressed that the bank does not see the risk of a deflationary spiral despite the surge in prices Russia observed following the start of its military operation in Ukraine. On the contrary, she insisted the CBR has reported a more recent decline in prices while noting they are still "substantially higher" than they were a year ago.

Nabiullina also highlighted that 70 foreign banks from 12 countries have joined the System for Transfer of Financial Messages (SPFS), Russia's replacement for the Society for Worldwide Interbank Financial Telecommunication (SWIFT). However, she stressed the CBR cannot disclose their identities due to their fears that the West might respond to their move with sanctions.

Baha Breaking News (BBN) / JR