The Bank of Russia has lowered its key interest rate by 25 basis points, marking the tenth consecutive reduction.
Key facts
- •The key rate was reduced from 14.25% to 14%.
- •This is the tenth consecutive rate cut by the central bank.
- •The previous rate reduction occurred in June.
- •The central bank's next meeting to discuss the rate is set for August 5.
The Central Bank of Russia has reduced its key interest rate by 25 basis points, bringing the rate to 14%. This decision marks the tenth consecutive time the bank has lowered the benchmark rate, which influences the interest rates offered to customers by other financial institutions.
By the numbers
Reasons for the Rate Cut
The central bank cited a moderate pace of economic growth observed since the beginning of the year as a primary factor for the reduction. Additionally, the bank noted a slowdown in lending activity and rising inflation expectations among the public, businesses, and financial markets.
Market Expectations
The move deviated from the expectations of experts, who had anticipated that the Bank of Russia would maintain the rate at 14.25%. Analysts had pointed to accelerating inflation, fueled in part by increasing fuel prices, as a reason for a potential hold.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by Meduza (English).
