Head of the Central Bank spoke about the changes in the key rate by 2020

© RIA Novosti / Natalia to Seliverstova in fotobanka the building of the Central Bank of Russia on Neglinnaya street in Moscow. Archival photoHead of the Central Bank spoke about the changes in the key rate by 2020© RIA Novosti / Natalia to Seliverstova the image Bank

The Bank of Russia expects that by 2020, the key rate may fall to 6.5-7% with an inflation rate of 4% per annum, said Chairman of the Central Bank Elvira Nabiullina.

«I assume that medium-term inflation is around 4%, this means that the inflation expectations will be reduced accordingly, and by 2020 our key rate can be 6,5-7%,» — said Nabiullina in the state Duma.

«At what rate can the banks lend? It depends on what the borrower. We even now see in one sector, e.g. agriculture, industry, metallurgy, industry — lending rates different. It depends on the situation in which the enterprise is located, how competitive it is, it has orders, no debts. Therefore, this rate will be determined by commercial banks. But the average will probably be 9-10%. But it forecast», she added, speaking about the prospects of the next three years.

Now the key rate of the CBR is 9.25% per annum. Of the Central Bank in late April reduced it by 0.5 percentage points. This is the second rate reduction this year.