By Russia’s central bank on Friday cut its key interest rate by a bigger-than-expected 150 basis points, as the country deals with a strong currency, cooling inflation and a possible recession.
The cut takes the key rate to 8% from 9.5%; analysts had expected a rate cut of 50 basis points, according to a Reuters poll.
“The external environment for the Russian economy remains challenging and continues to significantly constrain economic activity,” the bank said in a statement.
It is the fifth rate cut by the Central Bank of Russia so far this year after an emergency hike from 9.5% to 20% in late February, following Moscow’s invasion of Ukraine.
In June, its reduced the rate by 150 basis points to 9.5% — the level it was at when Russia’s invasion of Ukraine began.
This is a developing story and will be updated shortly.
