Bank of Russia lowered key rate to 9.5% per annum

The Board of Directors of the Bank of Russia decided to cut the key rate from 11% to 9.5% per annum. This is stated in the official press release on the website of the Central Bank. It is noted that despite the difficult external conditions for the Russian economy, the slowdown in inflation is happening faster, and the decline in economic activity is on a smaller scale than previously expected.

“Latest data points to low current price growth rates in May and early June. This was facilitated by the dynamics of the ruble exchange rate and the exhaustion of the rush consumer demand effects amid a noticeable decrease in inflationary expectations of the population and businesses,” the Bank said in a statement.

Further decisions will be made taking into account the actual and expected inflation trends. According to the forecast of the Bank of Russia, taking into account the ongoing monetary policy, inflation this year will be 14-17%, in 2023 it will decrease to 5-7%, and in 2024 it will return to 4%.

Author: Roman Yakimchuk