US EditionRussia cuts interest rates from two-decade high as economy slows
- Russia's Central Bank cut the key interest rate by 100 basis points to 20% on June 6, ending a two-decade high of 21% set in October 2024.
- The rate cut follows several hikes intended to curb inflation, which remains above 10%, amid signs of economic slowdown and easing inflationary pressure.
- The Central Bank stated domestic demand still outpaces supply, inflationary pressures continue to ease, and monetary policy tightness will remain prolonged.
- The Bank anticipates that annual inflation will reach its 4% goal by 2026 and indicated that future adjustments to interest rates will be guided by how rapidly and consistently inflation decreases.
- The rate cut may aid economic growth amid high borrowing costs, sanctions, and military spending, but the Central Bank has not ruled out maintaining tight policy.
56 Articles
56 Articles
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In order to counter high inflation, the Russian central bank had raised the key interest rate to an unprecedented level. However, Putin did not like this – a power struggle arose.
The Bank of Russia announced on June 6th the reduction of its key interest rate to 20%, the first reduction since September 2022. This decision, taken by the Central Bank’s Board of Directors, marks a clear sign: the Russian economy is steadily moving towards a stable and balanced recovery, despite sanctions and external economic pressure. READ ALSO: Slovakia challenges the EU and rejects new sanctions against Russia “Inflationary pressures cont…
RECIT - On Friday, the BCR reduced its policy rate to 20%, a level that has remained the highest in two decades. Inflation would have dropped to under 10% in early June.
Russia cuts key interest rate for first time since 2022
Russia's central bank on June 6 lowered its soaring interest rate from 21% to 20%, indicating easing pressures from inflation. The decision marks Russia's first rate cut since September 2022. The central bank decreased rates by 100 basis points, bringing it to 20% from the 21% rate established in October 2024 — the country's highest level since the early 200s. The move follows a drop in inflation, which fell from 10.7% in January to 6.2% in Apri…
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