MOSCOW, Feb 8 (Reuters) - The Russian central bank will cut its key interest rate from the current 16% during 2024 but the timing of cuts will depend on inflation as well as on inflation expectations, the Deputy Governor Alexei Zabotkin said on Thursday.
The Bank of Russia is widely expected to keep rates on hold at its first meeting of the year on Feb. 16, but data published on Wednesday that showed weekly consumer prices rising by 0.16% for the second week running could give policymakers pause for thought.
"This year the rate will decrease from the current level of 16%. But when exactly this will happen will depend on how the situation with inflation, inflation expectations, credit growth, money supply and aggregate demand evolves," Zabotkin said in an interview with Tinkoff Private Talks.
Zabotkin said that the average key rate during 2024 is expected to be in the range of 12.5%-14.5%.
"We need to be confident that fears about future price rises among the population and businesses are gradually fading - these are really the required conditions for the board of directors to be comfortable in softening monetary policy," Zabotkin said. (Reporting by Elena Fabrichnaya; Writing by Maxim Rodionov; Editing by Alison Williams and Hugh Lawson)
