Russia’s central bank lowered key rate to 7.5%
“Current consumer price growth remains low, prompting a further slowdown in annual inflation. This can be attributed to both the influence of a number of one-time factors and restrained consumer demand. The dynamics of business activity is better than the Bank of Russia expected in July. However, the external environment for the Russian economy remains challenging and continues to significantly constrain economic activity. Inflationary expectations of the population and price expectations of enterprises remain at a high level,” the regulator said.
In late February, the Central Bank raised the key rate by 9.5 percentage points at once to a record of 20%. Then the regulator began to gradually reduce the key rate. In early April, the rate was reduced to 17%, on April 29 - to 14%, May 26 - to 11%, and the last time - to 8% on July 22.