OREANDA-NEWS  The Bank of Russia believes that if events develop according to the baseline scenario, there is still room for a key rate cut in 2025, but a rate cut is not a foregone conclusion, said Andrey Gangan, director of the Central Bank's monetary policy department.

"If events develop in accordance with the baseline scenario, then there is still room for a rate cut in 2025, of course. But the rate cut is not a foregone conclusion. There may be different steps, including pauses between drops. Pro-inflationary risks remain, including from geopolitics, and we will make further decisions carefully based on incoming information," Gangan said in an interview with Rossiyskaya Gazeta.

According to him, the Central Bank's basic forecast does not include an increase in the key rate, but this cannot be ruled out in case of another development. Therefore, in addition to the basic scenario, the Central Bank is also considering alternative scenarios. "This is necessary in order to be ready to act in any conditions. Although the basic scenario is the most likely, that's why we are mainly discussing it," Gangan clarified.

Following the meeting on July 25, the Bank of Russia lowered its key rate by 2 percentage points to 18% per annum. At the same time, the Central Bank clarified the "neutral signal" regarding its next steps: decisions will be made depending on the sustainability of the slowdown in inflation and the dynamics of inflation expectations.