VTB: Bank of Russia may reduce key interest rate to 7-8%

VTB: Bank of Russia may reduce key interest rate to 7-8%

The Central Bank of Russia may reduce the key interest rate to 7-8% in the next year, the president of Russia's VTB Bank, Andrei Kostin, said.

"There is a chance that the key rate in 2017 will be reduced to 7-8%, which is much better for the economy than the current 10%," the head of Russia's second largest bank, said.

According to him, the declining inflation rate allows for a lowering of the key interest rate. Kostin added that the co-called cheap money are needed for the Russian economy to renew growth, Sputnik cited him as saying.

On September 16, the Russian Central Bank cut the key rate by 0.5% down to 10%, citing a declining inflation rate. 

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