Russia’s central bank lowered its interest rate to 11% on Thursday and said there was room for more cuts this year as inflation slowed to a more than 20-year high and the economy was poised to collapse. contract.
The monetary authority announced the change at an extraordinary meeting after cutting the benchmark rate to 14% in April, weeks after an emergency increase to 20% triggered by Russia’s decision to send tens of thousands of troops to Ukraine on Feb. .
The central bank, which has now cut its benchmark rate by 900 basis points accumulated since February, said it “keeps the prospect of interest rate cuts open at its upcoming meetings.”
“Inflationary pressure eases with the dynamics of the ruble exchange rate, as well as the notable drop in household and business inflation expectations,” the bank said in a statement in English.
The ruble has become the world’s best-performing currency this year, buoyed by capital controls Russia imposed in late February to limit risks to financial stability and fend off Western sanctions.
The central bank said external conditions for the Russian economy were still challenging, but risks to financial stability had eased somewhat, making room for some easing of some capital control measures.
The ruble’s performance “gave the authorities room to roll back emergency measures introduced since February,” analysts at Capital Economics said in a note.
Inflation has eased to 17.51% on May 20 from 17.69% a week earlier, amid a decline in consumer activity, the Economy Ministry said, but is at its highest point since early 2002.
Source: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
