The Central Bank of Russia may implement a more significant reduction in its key interest rate as inflation continues to decline, and both government officials and business leaders push for measures to prevent the economy from slipping into a deeper downturn.
Officials are anticipated to decrease the benchmark rate for the second meeting in a row on Friday, according to all economists consulted by Bloomberg. Out of ten economists, six foresee a 200-basis-point reduction, bringing the rate down to 18%. One expert predicts an even larger drop, while three others project cuts ranging between 100 and 150 basis points.
— news from Bloomberg.com
— News Original —
Russia’s Growing Economic Woes Set Stage for Deeper Key Rate Cut
The Bank of Russia has room for a deeper cut to its key interest rate amid slowing inflation and growing pressure from officials and businesses to save the economy from sliding into recession.
Policymakers are poised to lower the benchmark rate on Friday for the second consecutive meeting, according to all economists surveyed by Bloomberg, with six out of ten expecting a 200 basis-point cut to 18%. One analyst anticipates an even bigger decrease, while three forecast the rate to be brought down by 100-150 basis points.