Facing concerns over a potential economic downturn and easing inflationary pressures, Russia’s central bank has lowered its primary interest rate to its lowest point in almost twelve months. The Bank of Russia announced a reduction of 200 basis points, bringing the rate down to 18% on Friday. This decision aligns with expectations from nearly all economists surveyed by Bloomberg, who predicted a rate cut. Out of eleven analysts, seven had anticipated this specific reduction, while one suggested that a more substantial decrease might occur. Meanwhile, three experts projected a smaller cut ranging between 100 and 150 basis points.
— news from Bloomberg.com
— News Original —
Russia Opts for Deeper Key Rate Cut to 18% as Economy Cools
Russia’s central bank slashed its key interest rate to the lowest level in nearly a year amid slowing inflation and worries the country’s economy could tip into recession.
The Bank of Russia reduced the benchmark rate by 200 basis points to 18% on Friday. All economists surveyed by Bloomberg expected a cut, and seven out of 11 anticipated today’s move. One analyst expected an even bigger decrease, while three forecast the rate to be brought down by 100-150 basis points.