In annual terms, inflation in Russia slowed to 5.5% as of May 12 while private and business lending is barely growing, creating “more and more arguments towards the further monetary policy easing,” RBC quoted him as saying.

Russia’s annual inflation in April stood at 5.58%, down from 5.86% a month earlier but remaining higher than the central bank’s forecast of 4.5%-5.5% price increases this year.

The Russian central bank cut its key rate by 50 basis points to 14.5% in April as expected by analysts, despite pressure from businesses to do more to boost the economy.

The Russian central bank is forecast to further cut its key rate to 12% by the end of this year to spur economic growth after a surprise contraction in the first quarter, a Reuters poll of analysts conducted last month showed.