Bank of Russia Interest Rate Reduced Full Percentage Point

June 19, 2020

The Central Bank of Russia lowered its one-week repo rate by a full percentage point to a record low of 4.5%, bringing the net drop this year to 175 basis points. The rate earlier was cut 25 bps in February and by 50 bps in April. More monetary relief is moreover still in play according to a released statement announcing today’s action: “If the situation develops in line with the baseline forecast, the Bank of Russia will consider the necessity of further key rate reduction at its upcoming meetings.” The next meeting is scheduled July 24th. Officials expect Russian real GDP to slide 4-6% in 2020 on average, and inflation has receded faster than assumed previously.

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

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