news unrolled

Post: Central Bank cuts interest rate to 7.5 percent per annum

Categories

Bank of Russia building. Archive photo

The Central Bank of Russia is expected to cut the expected interest rate by 0.5 percentage points to 7.5% annually.

MOSCOW, September 16 – RIA Novosti. The Central Bank has cut interest rates for the sixth time in a row. Declaration regulator.

“On September 16, 2022, the Board of the Central Bank of Russia decided to reduce the key rate by 50 basis points to 7.5 percent per annum. The current growth rate of consumer prices remains low and contributes to a further slowdown in annual inflation,” the press release states. .

Most analysts surveyed by RIA Novosti expected such a decision, noting that inflation expectations are accelerating and the need to stimulate the economy.

According to the Central Bank, Russians’ inflation expectations for the next 12 months rose to 12 percent in August, and to 12.5 percent in September, with an increase of half a point. At the same time, according to Rosstat, deflation was recorded in Russia for the third month in a row in August.

The key rate is the minimum percentage at which the Central Bank lends to commercial banks for a week and is ready to accept funds for deposits. Its size affects the rate of inflation.

At the beginning of 2022, the indicator was at 9.5 percent per annum. At the end of February, due to tougher sanctions and increased volatility in the financial market, the Central Bank of Russia urgently increased the interest rate to 20 percent a year, which stabilized the situation with deposits and prevented the unwinding of the inflationary spiral. Already at the end of April, the regulator reduced the figure to 14 percent, and then gradually increased it to eight percent per year.

Also read:

  • Media, Ministry of Finance proposes to reduce unprotected budget items
  • Economist urged not to keep Russia’s gold and foreign exchange reserves in yuan only

Source: Ria

Leave a Reply

Your email address will not be published. Required fields are marked *