VTB CEO urges cbank to cut key rate to 10-12%

MOSCOW, Mar 4 (PRIME) -- The situation on the Russian currency market has stabilized, the key goal of high central bank’s key rate is fulfilled, and it may now be lowered to 10-12%, Andrei Kostin, CEO of the country’s second biggest lender VTB Bank, told reporters Wednesday.

“We are hear moderate proposals, maybe even about 10-12%. But the decrease must be continued. The central bank has already made the first step by cutting the rate to 15% from 17%, but it is not enough for companies to take credits and use them to develop business,” Kostin said.

“Today the business and the government are saying in unison…that it is vital to lower the central bank’s key rate as soon as possible. If we do it, we may in many ways overcome the problems and threats that are connected with our economy being overcooled, with a rapid decrease of growth dynamics and so on.”

After the ruble’s sharp drop in December 2014, the central bank increased the key rate to 17% from 10.5% to fight inflationary and devaluation risks. On January 30, the regulator cut the rate to 15% saying it expects inflation to slow down and economic growth to pick up.

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