The expert hopes that the new money of the Central Bank will reach the recipients

By reducing the key rate, the Central Bank of Russia is responding to a collapse in business activity, the scale of which was more than official forecasts, said Gennady Lyaskin, candidate of economic sciences, head of the Department of Economic Theory at Novosibirsk State University of Economics and Management. Recall that earlier the Central Bank of Russia reduced the key rate by 1% from 5.5% to 4.5%. See also: The Bank of Russia reduced the key rate by 100 basis points. The Central Bank of the Russian Federation for many years adamantly pursuing the goal of keeping inflation at any cost, showed mercy and weakened the high interest rate on the Russian economy. The last decrease immediately by a percentage point to the level of 4.5% is something extraordinary for the monetary authorities. However, compared to developed economies, this may even look half a measure. The US Federal Reserve rate is 0.25%, the European Central Bank credits at zero interest, and in Switzerland and Japan there are negative values ​ ​ of key rates. Judging by the reaction of macroeconomic indicators, the business community expected such a decision after the last rate cut in April. The ruble exchange rate did not significantly respond to this news. In any case, the predictability of the regulator's actions is itself an important stabilizing factor in the financial market. The goal of the monetary expansion of the Central Bank is to intensify business activity and stimulate aggregate demand by increasing the availability of credit resources. In a normal situation, the reduction of the key rate contributes perfectly to growth in all sectors of the national economy. However, in the current conditions of the great lockdown, the tasks of not accelerating the rise, but mitigating the fall, come to the fore. By reducing the key rate, the Central Bank is responding to a collapse in business activity, the scale of which was more than official forecasts. It has become clear that the contraction of total expenditures leads to a deepening of deflationary trends. In other words, the public's income has become significantly less, she spends them with more reluctance, so prices are rising very slowly. Inflation is declining despite some recovery in hydrocarbon export prices. Under such conditions, the monetary authorities considered it acceptable to soften policies to centrally feed the financial flows of the falling economy. Gennady Lyaskin According to the expert, the entrepreneurial sector urgently needs new credit sources of centralized money in order to compensate for the losses of the period of safe behavior and reach the restoration of markets. We dare to hope that the new money of the Central Bank will reach the final recipients from among medium and small businesses in July this year, Laskin emphasizes. The historical minimum has been updated.