Analyst Kochetkov commented on the decision of the Central Bank to reduce the key rate to 8%

“Following the results of May, inflation was 17.1%, in June it decreased to 15.9%, and by June 15 it was already at the level of 15.5% per year.

Accordingly, the Bank of Russia has decided that prices are falling faster than previously predicted,” he told the Prime agency.

Kochetkov allowed a possible reduction in retail prices, taking into account the continued fall in producer prices.

“However, the statement of the regulator refers to the significant contribution of the ruble exchange rate to the price reduction.

If the rate continues to decline as aggressively, then there is a high risk of provoking a sharp weakening of the ruble and the resumption of inflationary pressure,” he concluded.

On July 22, the Board of Directors of the Central Bank of Russia decided to cut the key rate from 9.5% to 8% per annum.

The head of the Bank of Russia Elvira Nabiullina noted that the Central Bank will continue to change the rate as inflation falls.

Financial analyst Alexander Egorov, in an interview with the FBA "Economy Today" commented on the situation in the foreign exchange market.