Bank of Russia announced on Friday its board of directors has decided to cut the key interest rate by 150 basis points to 9.5%, despite "significantly limiting" economic activity. According to the central bank's official report, Russia's annual inflation will be between 14% and 17% this year, while decreasing to between 5% and 7% in 2023 and to 4% in 2024.
"Monetary conditions generally remained tight, easing unevenly across different financial market segments," the bank noted, adding that "operational indicators indicate that the decline in business activity after a sharp fall in April has halted in May... Pro-inflationary risks continue to decline, but remain significant," it concluded.
The next meeting of the bank's directors board is scheduled for July 22, when further rate cuts could take place.
