UPDATE: Russia’s Sberbank CEO says cbank may cut key rate in Sep

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MOSCOW, Sep 13 (PRIME) -- There are conditions for the central bank to cut its key rate at the upcoming meeting on Friday, inflation is slowing, national top lender Sberbank CEO German Gref said Tuesday.

“On the whole, there are objective reasons for a key rate cut,” he said.

“There is a problem that in the third and fourth quarters seasonal inflation is slightly growing and the central bank tries to hedge possible inflationary risks, that’s why I would not foresee,” Gref said.

Sberbank projects that inflation may be below 6% in 2016, he said.

“Although lately loan rates become positive and this is amid such fast decrease of inflation, I do not remember such a fast decline of inflation in our country, this certainly bears a negative burden on the economy and this factor should be taken into consideration as well,” Gref said.

He also said that he expects interest rates on deposits and loans in Russia to gradually decrease until the end of 2016. “If interest rates are falling, (including the central bank’s key rate), then not only Sberbank, but all other banks will cut their rates on loans and deposits,” he said.

“We cut our rates just a month ago. I don’t think it will happen sharply, but a gradual decrease of rates is possible until the end of the year,” Gref said.

At present, the key rate amounts to 10.5%.

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