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Russia slashes interest rates by 300 basis points

bank of russia has decided to cut the reference interest rate by 300 basis points, which would thus stand at…

By admin , in news , at May 26, 2022

bank of russia has decided to cut the reference interest rate by 300 basis points, which would thus stand at 11%, after detecting a slowdown in the growth of price growth as a result of a portion of the ruble’s appreciation, which has hit a four-year high. is on the level. Against the dollar and against the euro at a seven-year high.

The Bank of Russia was forced to increase on 28 February Rate of interest The impact on inflation from 9.50% to 20% and the immediate response to the country’s financial stability of international sanctions imposed by the West following the invasion of Ukraine.

The unit, which “keeps open the possibility of rate reduction at its next meetings”, has highlighted that the latest weekly data gives an important indication of slow down The current rate of price increase.

In this sense, the Russian Central Bank believes that inflationary pressures are easing due to the dynamics of the ruble exchange rate, as well as a significant reduction in expectations. inflation of homes and businesses.

deposit in ruble

Thus, although the year-on-year inflation reached 17.8% in April, it would have been as per the last May 20 estimate. slowed down up to 17.5%, thus declining more rapidly than the Bank of Russia envisaged in its forecasts.

Similarly, the Russian issuing institution has also indicated that funds continue to reach fixed deposits in ruble, while credit activity of the Russian banking sector remains weak, limiting pro-inflationary risks and forces. make flexible monetary terms.

For its part, it has warned that external conditions “remain challenging” for the Russian economy, which largely restricts economic activity, although it has underlined that the risks to the Stability financial Allows relaxation of certain capital control measures.

Russia slashes interest rates by 300 basis points

2022-05-26 08:51:11