UPDATE: Ministry sees room for central bank key rate reduction

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VLADIVOSTOK, Sep 4 (PRIME) – Russia can reduce its key rate further, Economic Minister Maxim Oreshkin told Business FM during the Eastern Economic Forum on Wednesday.

“We see that the central bank has already cut the rate twice. Based on all of the central bank’s communications, it is preparing to do it again,” he said.

The central bank lowered the key rate by 0.25 percentage points in June and by 0.25 percentage points in July to 7.25% annually. The next meeting on the issue will take place on Friday.

Andrei Kostin, CEO of Russia’s second biggest lender VTB Bank, said he did not rule out that the central bank will reduce the key rate by 0.25 percentage points on Friday.

“It seems that everyone expects it from the central bank, I do not rule out that such a scenario is quite possible,” he said.

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