Nabiullina: likelihood of key rate hike in future decreases

The Russian Central Bank does not rule out the possibility of raising the key rate if the pace and sustainability of the fall in inflation are insufficient, but the likelihood of a hike has decreased, Central Bank Governor Elvira Nabiullina said.

"Current price growth is gradually slowing. This is largely the result of our tight monetary policy. The decline in inflation has also been influenced by improved market sentiment and the strengthening of the ruble," Elvira Nabiullina said.

According to her, price pressure remains high and inflation expectations are elevated, which means they need to maintain tight monetary conditions for an extended period.

"Our future decisions will depend on whether the pace and sustainability of the fall in inflation are sufficient to return it to 4% in 2026. If they are insufficient, we may take an additional step to raise the rate, although the likelihood of this has decreased," Elvira Nabiullina said.