Russian Central Bank's key rate may be reduced by 2% on September 12

VTB Bank First Deputy Chairman Dmitry Pyanov stated that Russia’s Central Bank may implement a further key rate reduction at its upcoming meeting.

"I believe that on September 12, the Bank of Russia will choose between two options for reducing the key rate – minus 100 or 200 basis points",

Dmitry Pyanov said.

He added that current inflation levels, inflation expectations, and uncertainty regarding the state budget deficit support a cautious approach by the regulator.

In July, the Central Bank lowered the rate from 20% to 18%. The next meeting on the rate will be held in two weeks.