Another Russian Central Bank Rate Cut
July 28, 2019
The Board of Directors at the Central Bank of the Russian Federation enacted a second reduction of its one-week repo rate. Both cuts were by 25 basis points. Announced on July 26th, the rate drops to 7.25% and follows an initial easing in mid-June. The two cuts reverse a previous duo of hikes in September and December of 2018 and returns the rate to the level that had prevailed between March and September of last year. A released statement asserts that there will be a further easing move if the economy evolves in the short term as now expected. Russia’s economy has lately grown more slowly than expected, and inflation is receding. Such dropped 0.4 percentage points to 4.7% in June and was accompanied by the first monthly slowdown of core CPI in 15 months. the statement anticipates inflation declining to 4.0% by early 2020. Prior to mid-2016, the central bank rate had been at 11.0%. The Board next meets September 6.
Copyright 2019, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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