The Russian central bank has cut interest rates from 14 to 11% and could cut them further “in upcoming meetings” if inflation allows it.
“The latest weekly data – states the institute – show a significant slowdown in the current rate of price growth. Inflationary pressures are easing in the wake of the dynamics of the ruble exchange rate and the significant decline in inflation expectations of households and In April, annual inflation reached 17.8%, however, based on estimates as of May 20, it slowed to 17.5%, falling faster than in April forecasts. “
The Russian Central Bank “therefore” keeps “open the prospect of a new rate cut in the next meetings” starting from that of 10 June. “In its rate decisions, the Bank of Russia will take into account the current and expected inflation dynamics related to the target and the processes of economic transformation, as well as the risks posed by domestic and external conditions and the reaction of the financial markets”, explains the ‘institute, which expects a reduction in inflation to 5-7% in 2023 and to 4% in 2024.
Meanwhile, “the external conditions for the Russian economy are still challenging, limiting economic activity considerably” while “financial stability risks have somewhat decreased, allowing for a relaxation of capital control measures”.
Source: Ansa
I have been working in the news industry for over 10 years now and I have worked for some of the biggest news websites in the world. My focus has always been on entertainment news, but I also cover a range of other topics. I am currently an author at Global happenings and I love writing about all things pop-culture related.
