[Central Bank of Russia cuts key rate to a record 20%]
On June 6, the Central Bank of Russia announced cutting the key rate by 100 basis points to an annualized 20%. The press release stated, "The current inflationary pressure continues to ease. Despite domestic demand still exceeding the expansion capacity of goods and services supply, the Russian economy is gradually returning to a balanced growth track."
The Central Bank of Russia pledged to maintain "the degree of monetary tightening required to bring inflation back to its target in 2026," and noted that "this means implementing a tight monetary policy for the long term. Future key rate decisions will depend on the speed and sustainability of the decline in inflation and inflation expectations." The Central Bank of Russia expects the annual inflation rate to return to the 4% target level by 2026.
The last interest rate cut by the Central Bank of Russia was in September 2022 - from 8% to 7.5%. Since then, the interest rate has been raised multiple times, remaining at 21%, the highest level in modern Russian history, since October 2024. At the latest interest rate meeting in April 2025, the Central Bank decided for the fourth time to keep the interest rate unchanged at 21%.
Original article: https://www.toutiao.com/article/1834194294336512/
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