MOSCOW
An interest rate reduction may be possible in the next quarter, said Russian Minister for Economic Development Alexei Ulyukayev said at an Interfax press conference on Thursday.
"I believe that the key rate is extremely high, and it will need to be reduced during the first quarter of 2015. From my point of view, there is such a possibility," the minister said.
The minister also warned of a 3 percent contraction in Russia's economic growth if the price of oil goes below $60 per barrel.
The central bank's key rate has been at 17.5 percent since Dec. 16. Shortly after the central bank announced that it had raised the key rate for the second time in less than a week, the ruble began its historic tumble, at one point reaching record lows of over 80 to the dollar and over 100 to the euro.
Since that day, the ruble has managed to regain some of its value as well as to stabilize. On Friday morning, the ruble reached a new recent high of 51.90 and 63.45 to the dollar and the euro, respectively.
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