POLL-Russian central bank seen keeping key rate on hold at 21%

MOSCOW, June 2 (Reuters) - The Russian central bank will keep its key interest rate on hold at 21% at its board meeting on June 6 but may soften its rhetoric and signal rate cuts later in the year, a Reuters poll of 26 economists showed on Monday.

Seven economists expected the regulator to start cutting the key rate this week but the majority pointed to still rising household inflationary expectations, which are closely monitored by the central bank, as an obstacle for an early cut.

The forecast for 2025 full-year inflation was unchanged from the previous poll at 7% while gross domestic product (GDP) growth was seen slightly lower at 1.5% compared to 1.6% in the previous poll.

The rouble, which rallied by over 42% against the dollar this year mostly on expectations of a peaceful settlement in Ukraine, was seen weakening to 97.5 to the U.S. dollar in one year compared to 95 to the dollar seen in the previous poll.