Russian Central Bank cuts policy rate to 4.25%

Russian Central Bank cuts policy rate to 4.25%

The Russian central bank announced on Friday that it lowered its policy interest rate by 25 basis points to 4.25% and that it is considering further reductions in other meetings. Important Information from the Annual Report "Inflation-fighting factors continue to have a significant impact on inflation." "Household and workplace inflation expectations generally stabilized after the decline in May and June." "Despite easing the economic activity, easing the restrictions, the recovery of global and Russian economies will be gradual." "In these conditions, there is a risk that inflation will deviate from the 4% target downwards in 2021." "A significant relaxation in monetary policy since April aims to reduce this risk and balance inflation to near 4% above the forecast." "The strengthening of the ruble since April has largely offset the depreciation of the exchange rate, which includes the upward pressure on consumer prices." "As of July 20, annual inflation was close to 3.3% according to estimates." "Seasonally adjusted monthly growth rates continued to decline in June and will remain low until the end of the year due to the slowdown in demand." The USD / RUB parity rose slightly in the last few minutes and gained 0.23% at the end of the day and was at 71.6213.