10 Jun 2022 13:59

Central Bank of Russia lowers key rate 150 bps to Feb level of 9.5%

MOSCOW. June 10 (Interfax) - The Central Bank of Russia's board of directors decided at its Friday meeting to lower the key rate 150 basis points to 9.5% from 11%, more than the 100 bps cut that the market expected.

"The external environment for the Russian economy remains challenging and significantly constrains economic activity. At the same time, inflation is slowing faster and the decline in economic activity is of a smaller magnitude than the Bank of Russia expected in April," the regulator said in a commentary following the decision.

"Recent data suggest that price growth rates in May and early June have been low. This comes as a result of ruble exchange rate movements and the tailing-off of the surge in consumer demand in the context of a marked decline in inflation expectations of households and businesses," it said.

"The Bank of Russia will consider the necessity of key rate reduction at its upcoming meetings," it said.