The country’s central bank cut its key interest rate by 150 basis points to 9.5% — the level it was at when Russia’s invasion of Ukraine began.
The Central Bank of Russia on Friday cut its key interest rate by 150 basis points to 9.5% — the level it was at when Russia’s invasion of Ukraine began. Although acknowledging that the external environment for the Russian economy remains “challenging and significantly restrains economic activity”, the central bank’s board said in a statement that “inflation is slowing faster and the decline in economic activity is of a smaller magnitude” than it expected in April.
“Recent data suggest that price growth rates in May and early June have been low. This comes as a result of ruble exchange rate movements and the tailing-off of the surge in consumer demand in the context of a marked decline in inflation expectations of households and businesses”, the CBR said.
