The Central Bank of Russia Cuts Interest Rates Once Again

The Central Bank of Russia lowered the policy rate to 9.5 percent, bringing it to the level before the Ukraine War.

The Central Bank of Russia Cuts Interest Rates Once Again. The bank, which decided to cut the policy rate from 14 percent to 11 percent on May 26, reduced the policy rate to 9.5 percent at the meeting held today. Thus, the policy rate was drawn back to the level before the invasion of Ukraine, which started on February 24. After the invasion, the bank decided to raise the policy rate from 9.5% to 20%. After today, the bank has decided to cut interest rates three times in a row. The interest rate, which was determined as 9.5 percent, was below the expectations of economists participating in the British news agency Reuters survey. Economists surveyed had predicted that interest rates would be reduced to 10%. On the other hand, the Central Bank of Russia, in its statement regarding the decision, stated that "The Central Bank of Russia will evaluate whether there is a need to lower the policy rate in the upcoming meetings." The bank's next monetary policy meeting is scheduled for July 22.