The Russian central bank has again eased its monetary policy significantly despite the ongoing sanctions against the country. The key interest rate will fall by 1.5 percentage points to 8.0 percent, as announced by the central bank in Moscow. It is the fifth rate cut in a row. Analysts had expected a reduction, but only to 9.0 percent. At the beginning of the attack on Ukraine, the central bank drastically raised its key interest rate to 20 percent in order to stop the ruble from falling. The ruble is now stronger than it was before the war, also due to significant restrictions imposed by Moscow on capital movements. Although the inflation rate is high at a good 15 percent, it is tending downwards. The central bank therefore has leeway to lower its key interest rate and relieve the economy.
Central bank – Russian key interest rate lowered – economy
