Economic Buzz: Russia Central Bank Slashes Key Rate By 300 bps

8 Apr 2022 , 04:16 PM

Russias central bank unexpectedly slashed its key rate by 300 basis points on Friday, citing challenging external conditions. At an unscheduled meeting, the Board of Directors of Bank of Russia decided to cut the benchmark rate to 17.00 percent from 20.00 percent. The bank said todays decision reflects a change in the balance of risks of accelerated consumer price growth, decline in economic activity and financial stability risks. On February 28, the central bank had hiked its interest rate sharply to 20.00 percent from 9.50 percent. The bank said the decision had helped to sustain financial stability and prevented uncontrolled price rises. Signaling monetary policy easing, the central bank today said it holds open the prospect of further key rate reduction at its upcoming meetings.

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