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.
