Bank of Russia cuts interest rate by 1.50% more than expected and hopes to boost the economy

The Bank of Russia cut interest rates by 1.50% to 8.0% at its meeting yesterday in an effort to boost the slowing economy.

The cut was larger than the 0.5% cut expected by analysts. It was the fifth rate cut this year.

“The Russian economy is facing challenges from external factors which continues to have a significant impact on economic activities,”

the statement said.

According to the central bank, economic activity slowed more than expected in June.

The central bank said that future interest rate decisions will be based on inflation adjustments and economic transformation processes to cope with long-term economic sanctions imposed by the West.

The central bank also expects inflation to fall to 12-15% this year before dropping to 5-7% next year and returning to its 4% target in 2024.

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