"Inflation is slowing down. Rate cut will boost Russia's economy": Aksakov

According to his remarks, as reported by NEWS.ru, the Central Bank's decision on the key rate indicates a slowdown in inflation and reduced demand for large loans. In turn, loans were expensive because the key rate was high, the head of the State Duma Committee noted. "[The reduction in the key rate] shows that inflation is slowing down. This is a good sign. And the demand for large loans has significantly decreased. But since the key rate was high, loans were expensive—naturally, with high interest rates. Demand for them has declined, and that’s why there is now room to lower the key rate. I expect this to stimulate demand for credit resources. And ultimately, cheaper money will flow into our economy, stimulating its growth," said the head of the State Duma Committee.

Earlier, Central Bank Governor Elvira Nabiullina commented on the key rate cut. According to her, to ensure further disinflation, the regulator must maintain tight monetary conditions. The head of the Bank of Russia also noted that the previous decision to raise the rate to 21%, accounting for inertia and lags, will continue to ensure a slowdown in inflation.