Kostin allowed the Central Bank’s key rate to remain at 12%

The Bank of Russia may leave the key rate at 12%, the chairman of the board believes VTB Andrey Kostin.

“I think that given the current trend towards stabilization [национальной валюты] and the depreciation of the dollar, I think that the Central Bank will refrain from raising rates for now [на ближайшем заседании]. It seems to me that it will remain,” Kostin said on the sidelines of the Eastern Economic Forum (WEF).

He added that the measures and rhetoric of the Central Bank “are having an impact, and speculators have become more careful in their work.”

On August 15, the Bank of Russia, against the background of the weakening ruble, decided to immediately increase the key rate by 3.5 percentage points to 12%. The regulator explained the decision by increased inflationary pressure and inflationary expectations, which are pressured by the dynamics of the exchange rate. Central Bank didn’t rule it out further rate increases.

September 11, Russian Presidential Aide Maxim Oreshkin stated on WEFthat the peak of the ruble depreciation has passed, and in the coming months there will be a surplus of currency on the market due to a number of factors. He explained that the surplus is formed due to a decrease in the volume of imports of goods and services and an increase in the key rate.