Russia lowers interest rates more than expected.

The Russian Federation's Central Bank, based in Moscow, lowered the policy rate by 300 basis points to 14%. The bank predicted that inflation would rise to 23% this year. The Central Bank of Russia cut the policy rate by 300 basis points from 17 percent to 14 percent. The median expectation of expert economists participating in the surveys were for a 200 basis point cut. The Central Bank made statements about the Russian economy. They predicted that the economy will contract by 8-10 percent this year. Inflation in Russia, which declared war on Ukraine, rose to 16.7% in March. In its statement today, the bank included its forecast that annual inflation will be in the range of 18-23 percent this year. The external environment continues to be difficult for the Russian economy, which is harming economic activity. Because there was no increase in prices or dangers to financial stability, the conditions for lowering the policy rate were met. It was also emphasized that the need for structural transformation in the economy would be taken into account and that inflation targets would be returned in 2024. The Central Bank of Russia increased the policy rate from 9.5 percent to 20 percent with an increase of 1050 basis points in February due to the sharp fall in the ruble after the war started, and decreased it to 17 percent in April.