By Joshua Manning • 16 September 2022 • 12:49
Bank of Russia lowers key rate to 7.5% to combat rising inflation Credit: Ultraskrip/Shutterstock.com
The Bank of Russia spoke on the lowering of its key rate to 7.5 per cent stating:
“On 16 September 2022, the Bank of Russia Board of Directors decided to cut the key rate by 50 basis points to 7.50% per annum. Current consumer price growth rates remain low, contributing to a further slowdown in annual inflation.”
“This is due to both the influence of a set of one-off factors and subdued consumer demand. Developments in business activity are better than the Bank of Russia expected in July.”
“However, the external environment for the Russian economy remains challenging, invariably putting significant constrains on economic activity.”
“Inflation expectations of households and price expectations of businesses remain elevated.”
“Moving forward, in its key rate decision-making the Bank of Russia will take into account actual and expected inflation dynamics relative to the target and economic transformation processes, as well as risks posed by domestic and external conditions and the reaction of financial markets.”
“According to the Bank of Russia’s forecast, annual inflation will total 11.0-13.0% in 2022 and, given the monetary policy stance, drop to 5.0–7.0% in 2023, returning to 4% in 2024.”
The news comes after the Bank of Russia restricted sale of securities of unfriendly countries to unqualified investors.
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Originally from the UK, Joshua is based on the Costa Blanca and is a web reporter for the Euro Weekly News covering international and Spanish national news. Got a news story you want to share? Then get in touch at [email protected]
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