The vast majority of analysts expect the key rate to be cut by 100 basis points (b.p.) to 10% per annum at the meeting of the Central Bank of Russia’s Board of Directors on Friday, June 10.

The Board of Directors of the Bank of Russia at an extraordinary meeting on May 26 decided to reduce the key rate for the third time by 300 bp, to 11% per annum. Prior to that, on April 29, the Central Bank reduced the rate by 300 bp to 14%, and on April 8 – also by 300 bp to 17%. The Bank of Russia sharply raised the rate from 9.5% to 20% on February 28 in response to the growth of devaluation and inflation risks. In March, it kept it at 20%.

Annual inflation in Russia, according to Rosstat, in May decreased to 17.1% from 17.8% in April (it was the maximum since January 2002). As of June 3, inflation in annual terms fell slightly further to 17.0%.