Chairman of the Russian Central Bank: A significant interest rate cut will lead to soaring inflation.

Russian Central Bank Governor Nabiullina stated during a speech in the Russian State Duma lower house of parliament that a sharp reduction in key interest rates will lead to soaring inflation, which in turn will cause market interest rates to rise. She pointed out, "Lowering key interest rates during high inflation will have the opposite effect, resulting in a double blow to the economy: first, inflation will rise, followed by an increase in interest rates." Nabiullina emphasized that reducing loan costs cannot be achieved solely through key interest rates. She explained, "Only when inflation is low will we see moderate interest rates."