Central Bank of Russia will assess feasibility of cutting rate at upcoming meetings, scope for this has not increased - deputy governor

ST. PETERSBURG. June 5 (Interfax) - The Central Bank of Russia has reiterated its signal regarding the future direction of monetary policy; it will assess the feasibility of further rate cuts at upcoming meetings.

"This does not in any way mean that a rate cut at each of them is inevitable," Central Bank Deputy Governor Alexei Zabotkin told journalists after a Sberbank business breakfast on the sidelines of the St. Petersburg International Economic Forum (SPIEF) 2026.

The next meeting of the CBR's board of directors on the key rate will take place on June 19.

Zabotkin did not say what rate decision options the Central Bank might consider at the June meeting, as there is still a lot of time before it. "We still have three weeks until the rate meeting, and a lot of additional data will materialize by that time," he said.

However, Zabotkin noted that the scope for a rate cut has not increased.

Zabotkin added that sustainable inflation is currently holding at 4%-5%.

"Sustainable seasonally adjusted price growth rates are somewhere within the range of 4%-5% year-on-year, which is where they have been for the past six to nine months. Apparently, this estimate, based on April data, is still relevant. Regarding May data, we will see. Judging by the weekly figures, May looks very similar to April," Zabotkin said.

The Central Bank in April cut the key rate for the fifth time in a row by 50 basis points to 14.5% per annum. The regulator then announced that it would evaluate the advisability of further key rate reductions at upcoming meetings depending on the sustainability of the inflation slowdown, the dynamics of inflation expectations, and an assessment of risks from external and domestic conditions.