The economist predicted the reaction of the ruble to the reduction in the key rate

The ruble's reaction to the Central Bank's decision to lower the key interest rate may be mixed. This opinion was expressed by Petr Shcherbachenko, an economist and associate professor at the Financial University under the Government of the Russian Federation, on Friday, June 6.

Earlier in the day, the Central Bank decided to lower the key rate to 20%, NSN reports. The last time the rate was lowered was in September 2022.

"In the short term, volatility is possible, but in the long term, a reduction in the key rate should support the strengthening of the ruble if it is accompanied by a steady decrease in inflation," the economist said in an interview with Lenta.Ru .

He added that the expected values of the dollar, depending on economic factors, may range from 70-75 rubles, the euro from 86-91 rubles, and the yuan from 10-12 rubles.

Breaking the trend: Inflation has finally started to slow down steadily

It is difficult to predict the Central Bank's decision on the rate so far

Russian President Vladimir Putin said at a meeting with members of Delovaya Rossiya on May 13 that the "soft landing" of the Russian economy would allow the Central Bank of the Russian Federation to lower its key interest rate. He stressed that high inflation is one of the key problems of today's Russian economy. In this case, it will be effective to "squeeze" inflation so as not to "freeze the economy itself."