Russia's Central Bank announces plans to cut key rate

The Bank of Russia may start lowering its key rate next year provided there are no new shocks, the regulator’s Governor Elvira Nabiullina said at a plenary session in the State Duma.

"We believe that our policy will allow bringing inflation down to 4.5-5%. As it slows down, we will consider a gradual reduction of the key rate as well. If there are no additional external shocks, of course, the decline will start next year," Nabiullina said.

In October, the Bank of Russia sharply raised the key rate by 2% to a record level of 21% per annum. It did not rule out the possibility of its further increase at the next meeting.