Cbank sees room for key rate cut as inflationary expectations fall
MOSCOW, May 25 (PRIME) -- RussiansТ inflationary expectations for the next 12 months decreased to 11.5% in May from 12.5% in April and 18.3% in March, which proves there is room for further reduction of the key rate, the central bank said on Wednesday.
The central bankТs board of directors will consider the key rate issue at an extraordinary meeting on Thursday, the authority said.
Inflationary expectations have been decreasing for†the second month in a row on the back of the ruble strengthening and positive economic anticipations of the respondents, the regulator said.
УThe decrease of inflationary expectation is a necessary prerequisite for lower inflationary pressure and proves there is room for reduction of the key rate,Ф the regulator said.
The key rate was raised by 10.5 percentage points to 20% in late February and fell to 14% by the end of April.
The next planned meeting of the board will take place on June 10.