Anticipates Additional Bank of Russia Key Rate Reduction in 2025, According to VTB
Fresh Take
VTB Bank's bigwig, Dmitry Pyanov, spills the beans on Russia's monetary policy in 2025 - and it's looking rosy! In an interview with RIA "Novosti" at SPIEF 2025, Pyanov, the First Deputy President and Chairman, shared his insights on the key interest rate. He cleverly compared the ongoing high key rate to an endless course of antibiotics, emphasizing its necessity but not its permanence.
According to Pyanov, recent data shows low inflation in May and June, but the Bank of Russia needs to tread carefully to avert a sudden price surge. He stressed the importance of the Bank of Russia's upcoming key meeting and updated forecasts for their next steps. He also hinted that the June rate cut might not be a solo act for the year.
The key rate and the overall macroeconomic situation have a significant impact on the ruble's exchange rate, Pyanov explained. He expects the ruble to maintain its current strength for a while due to a relatively stable economic and monetary policy environment. However, a gradual weakening is predicted come autumn, with the dollar reaching the 90 ruble mark by year's end.
As for economic growth, VTB remains optimistically cautious, projecting around 1.7% GDP growth for 2025, somewhat sandwiched between the government's and the Bank of Russia's predictions. Swing by Magaadan News on Telegram to discuss life in Magaadan and Magaadan Oblast, and stay tuned for more updates like these!
In the discussion about Russia's economic outlook, Dmitry Pyanov, VTB Bank's First Deputy President and Chairman, addressed the significance of the key rate in business finance, stating that it affects the ruble's exchange rate. Furthermore, he projected that the ruble's strength will persist for some time but may start to weaken around autumn, potentially reaching a dollar value of 90 rubles by the end of the year.
