Russia’s Central Bank lowered key rate to 17%

From April 11, the Bank of Russia will cut its key rate by 300 basis points to 17% per annum.

As reported on the official website of the Central Bank, this decision is dictated by the possible risks of accelerating price growth and a decline in economic activity.

“The external environment for the Russian economy remains challenging and significantly limits economic activity. Risks to financial stability remain, but have now ceased to grow, including due to the measures are taken to control the capital movement. There is a steady inflow of funds for term deposits. Annual inflation will continue to rise due to the base effect, but the latest weekly data indicate a significant slowdown in current price growth rates, also due to the dynamics of the ruble exchange rate. The tightening of monetary conditions was partially offset by lending support programs from the Government and the Bank of Russia, but in general, it will continue to limit pro-inflationary risks,” the statement says.