At its meeting today, the Russian Central Bank cut interest rates by 3% to 14%. At the same time, it stated that the financial market had stabilized.
“Because price and financial stability risks are no longer increasing. This creates conditions that favor interest rate cuts,”the central bank said in a statement.
The central bank said the latest data showed a slowdown in inflation. The ruble collapsed shortly after Russia’s invasion of Ukraine on February 24 but can now recover strongly.
In addition, the central bank expects inflation to return to its target of 4% in 2024 after settling between 18% and 23% this year.
Meanwhile, the central bank has also announced further interest rate cuts this year. Before the Russian attack on Ukraine on February 24, the key interest rate was 10%.