Russia’s central bank today announced it could keep cutting interest rates as its war against Ukraine rages on.
The key interest rate is back to levels before the Ukraine war began, as the Bank of Russia has lowered it to 9.5%, from 11%, in an attempt to support the economy as Western sanctions continue to bite.
“The Bank of Russia will consider the necessity of key rate reduction at its upcoming meetings,” it said.
“Russia’s inflation rate is currently running at 17%, but price pressures have eased in recent weeks as the rouble recovered its earlier losses.
“The Bank estimates that annual inflation will be 14.0–17.0% in 2022, before dropping to between 5% and 7% in 2023, and returning to its 4% target in 2024.”
Leave a Comment