Friday, Russia central bank slashed its interest rate to 8%, a significant decrease from the previous month’s setting of 9.5%, citing a decline in inflation.
Earlier this year, in an effort to stabilise the rouble following Moscow’s invasion of Ukraine in February, the bank increased the rate to 20%. Since then, it has been progressively reversing the increase, and rates are currently lower than they were just before the invasion.
“Current consumer price growth rates remain low, contributing to a further slowdown in annual inflation,” the bank said in a statement. “Inflation expectations of households and businesses have significantly decreased, reaching the levels of spring 2021.”
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