Moscow shopping mall is depicted early this year.
Anadolu | Anadolu | Getty pictures
Russian Central Bank cut off its sky-high interest rates for the first time since Friday September 2022, with inflation pressures-not long ago President Vladimir Putin described as “worrisome” – started to smooth.
The Bank of Russia reduced rates from 100 basis points to 20%. He was kept for 21% since last October, which is the highest level since the introduction of the new standard rate in 2013.
The seasonally set in April was 6.2% and the average was 8.2% in the first quarter of 2025, it said.
“The growth of domestic demand is outlawing the ability to expand the supply of goods and services, but the Russian economy is gradually returning to a balanced growth path,” the central bank said on Friday, the monetary policy “long -lasting” in order to return the inflation to its 4% goal.
A full -fledged attack on Russian Ukraine in February 2022 caused immense pressure PriceA A weak ruble Increasing import prices and it had to be done on the economy Re-oriented through the war of later years.
Russian Finance Minister Maxim Rishetnikov had Insisted on the central bank To reduce early rates of the week, care about the decline in production in various sectors. The growth of the Russian total domestic product was strongly retreated after a sharp contraction in early 2022 and 2023, but dropped to 1.4% in the first quarter of 2025. Economist In the meantime notice That growth is concentrated in production, in particular in defense and related industries and is ahead of state expense.
US President Donald Trump will be able to push Moscow and Kaiv to a permanent ceasefire or promise to the beginning of the year that the agreement to end the war is quickly deteriorating, and The direct attack between countries continues.
Despite this, is ruble The best performance currency in the world so far this yearAccording to the Bank of America, capital controls, policy tightening and decline in the US dollar. Greenback rose by 2.72% against Ruble Friday after the rate cut announcement.
For emerging European economist Nicholas, a 20% reduction in Capital Economics, a 20% reduction is a surprise to the market – that is, a deeper reduction than expected – and forecast rates end the year from previous estimates to 17%.
“The demand-reblogged imbalance from war indicates that interest rates have to remain in a restricted area,” he said.
US dollar/Russian ruble.
– CNBC’s Lee Ying Shan and Holly Eliot contributed.
