VTB Bank CEO Andrei Kostin is betting against his own First Deputy Chairman regarding the Bank of Russia’s upcoming key rate decision. Kostin believes the rate will be lowered, while Dmitry Pyanov predicts it will remain at its current level.

Kostin expressed his readiness to bet that the Central Bank rate will be lowered, clarifying it as a “bet of 10 clicks,” after Pyanov’s expectation that the Central Bank will maintain the rate at 21% on June 6.

Pyanov’s rationale stems from the absence of positive cooling effects in the labor market, coupled with previously announced double-digit indexations, including utility tariffs.

However, Kostin sees “visible signs of a smooth cooling of the economy” and a “slowdown in inflation,” as justification for his forecast.

He acknowledged that inflation expectations remain high but expressed confidence in the Bank of Russia’s deep data analysis and intellectual resources.

Previously, on April 25, Central Bank Chairman Elvira Nabiullina stated that the bank did not consider options for lowering or raising the key rate at the board of directors meeting, opting to maintain the rate at 21% for the fourth consecutive time.

The Central Bank admitted that inflationary pressure is decreasing but considered it “premature to judge the stability of emerging trends.”