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.
55 Articles
55 Articles
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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