24 Apr 2020 14:24

Central Bank of Russia lowers key rate 50 bps to 5.50%, as expected

MOSCOW. April 24 (Interfax) - The Central Bank of Russia's board of directors decided at its meeting on April 24 to lower the key rate 50 basis points from 6% to 5.50% per annum, in line with market expectations.

"Since the March Board of Directors meeting, the situation has changed dramatically. Significant restrictive measures have been introduced to combat the coronavirus pandemic both in Russia and across the world, which negatively influences economic activity. This creates material and prolonged disinflationary influence on price dynamics from the aggregate demand perspective, which offsets the effect of temporary pro-inflationary factors, including those related to the fall in oil prices. At the same time the situation in global financial markets has stabilised after a period of particularly high volatility in March. The Bank of Russia has reviewed its baseline forecast scenario and is shifting to accommodative monetary policy," the regulator said in a commentary to the decision.