Russia cuts its key interest rate, which rose sharply following the introduction of European sanctions
The Russian Central Bank lowered its key rate from 11% to 9.50%, estimating that, despite an environment « difficile » for the Russian economy, “Inflation is slowing faster, and the decline in economic activity is less significant” than she had expected. The Central Bank, which had drastically increased its rate from 9.50% to 20% in the wake of the first sanctions, at the end of February, has thus completed restoring it to the level it was at before the start of the military intervention. in Ukraine.
The Russian currency had collapsed following Russian troops entered Ukraine. The Central Bank then abruptly raised its rate and implemented drastic capital control measures. The ruble has since strengthened significantly, reaching levels not seen since 2015, both once morest the dollar and once morest the euro.
Inflation had reached an annual level of 17.8% in April, unheard of in twenty years. Price growth has slowed since, standing at 17% on June 3, according to the latest figure given Friday by the Central Bank.
