(This content was produced in Russia, where laws restrict coverage of Russian military operations in Ukraine)
MOSCOW (Reuters) – Russia’s central bank cuts key interest rates
Basis points on Friday pointed to 7.5% as inflation slowed and the economy needed cheaper loans to limit the downturn, but did not repeat recent guidance that it would examine the need for further cuts.
This is the fifth scheduled board meeting this year to cut rates. After Moscow sent its armed forces to Ukraine in February 28, the central bank raised its key interest rate to 24 % from 9.5% lowered to reduce financial stability risks.
50 The basis point cut was in line with the consensus forecast of analysts polled by Reuters earlier this week.
The central bank omitted forward-looking rate guidance in its statement, saying inflation expectations for households and businesses remained elevated. This suggests that the odds of another rate cut have declined.
“Looking ahead, the Bank of Russia will take into account actual and expected inflation dynamics relative to the target and the economy in its key interest rate decisions, the transition process as well as domestic and foreign conditions and Risks arising from financial market reaction.
Inflation is at 10.1% as of September 9, this year is expected to be at 11- within range %, the central bank said. It reiterated its hope that inflation will slow to 2023 of the 4% target of Negative impact of sweeping sanctions imposed by the West in response to Russia’s intervention in Ukraine.
Central bank maintains its forecast for a 4-6% economic contraction this year, but said the decline in gross domestic product could be closer to 4%. April Later in the year, it had expected GDP to shrink by 8-%.
Central Bank Governor Elvira Nabiullina will further clarify the bank’s forecasts and policies in a media briefing at GMT 1200.
Next pricing meeting scheduled Held in October 28.
