OREANDA-NEWS  By the end of this year, the leadership of the Central Bank is unlikely to lower the key rate below 10 percent. This was stated by the head of the Russian Union of Industrialists and Entrepreneurs (RSPP) Alexander Shokhin, quoted by RIA Novosti.

By the end of December, he expects, the key rate is likely to be in the range of 10-12 percent per annum. Such dynamics will generally be consistent with the regulator's cautious monetary policy, Shokhin explained.

It is not worth expecting a more drastic weakening of the PREP in the medium term, the head of the business association believes. This will not be facilitated by the continued high inflation expectations of Russians, Shokhin stated. "We believe that the current very careful macroeconomic policy will be continued," he concluded.

Following the April meeting, the Central Bank's board of directors lowered the key rate by 50 basis points from 15 to 14.5 percent per annum. The regulator's management called a steady slowdown in consumer price growth and a decrease in inflation expectations of the population the main conditions for further weakening of the PREP. Taking into account the current dynamics, it is worth reducing the key rate to single digits no earlier than next year, as noted earlier by Deputy Chairman of the Central Bank Alexey Zabotkin.