Bank of Russia

March 20, 2020

The Bank of Russia had previously lowered its key interest rate from 7.75% prior to June 2019 to 6.0% after a 25-basis point cut in February. However, this easing cycle had to be put on indefinite pause this month because a tumbling ruble is likely to raise inflation above the 4% target in coming months. Although bank officials in a statement believe that weaker global and domestic growth as well as soft oil prices will eventually restore inflation to target next year, forward guidance that more rate cuts are likely was deleted.

Copyright 2020, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

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