Russian Central Bank Cuts Key Rate


Russia's central bank on Friday cut its main interest rate for the first time since March 2018 amid slowing economic growth and inflation in a widely-anticipated move.

The Bank of Russia lowered its key rate from 7.75 percent to 7.50 percent and said there could be another rate cut soon.

"The annual inflation slowdown is continuing," it said in a statement.

"Compared to March, short-term pro-inflationary risks have abated."

The bank revised down its end-of-year annual inflation forecast to 4.2-4.7 percent from an earlier 4.7-5.2 percent.

"Policymakers suggest more loosening is on the cards," Capital Economics said in a note to clients.

"The key rate will be lowered to 6.75 percent by the end of next year," it predicted.

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