Russian central bank cuts the interest rate again

Russian central bank cuts the interest rate again

In a surprising move, the Bank of Russia cuts its interest rate by 50 basis points.

As Coronavirus cases in Russia increase, and with Oil moving chaotically, the central bank decided to try to contain the effects over the economy by slashing the interest rate down to 5.5%. The Bank is open to further cuts (today’s move is the seventh cut in just one year).

The Bank expects the GDP to drop between 4% and 6% this year. A rebound of 2.8% to 4.8% is forecasted for 2021. The recovery will be slower in 2022 – between 1.5%- 3.5%.

As far as inflation goes, the Bank projected a stabilization at 4% later in the year.

USD/RUB traded higher by 0.8% after the announcement.


Sources: reuters.com, cnbc.com

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The information presented herein is prepared by CAPEX.com and does not intend to constitute Investment Advice. The information herein is provided as a general marketing communication for information purposes only and as such it has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation.

Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance is not a reliable indicator of future results.