The IMF urged the Russian authorities to lower the key rate to a new historical record from the current 4.25 percent per annum by 0.5 percentage points. Such proposal is provided in the report of an international organization.

Another cut in the key rate to a record may collapse the ruble rate, the IMF recognizes. However, the institute insists that this can facilitate the economic growth. The IMF also believes that the Bank of Russia should not focus on the sharp rise in prices in the country. Recent statistics, which recorded an increase in inflation at the beginning of the year by 5 percent, is only a temporary phenomenon, according to representatives of the IMF.

According to their forecast, the consumer price index will return to normal by the end of the year and will be consistent with the Central Bank’s target of 3.5-4 percent. “Short-term inflationary pressure caused by the weakening of the ruble is currently keeping inflation above the four percent target, but IMF staff expect inflation to fall to 3.5 percent by the end of 2021,” the IMF experts say.