The Central Bank of Russia lowered key interest rates to a record low low of 4.25 percent.
According to Reuters, the bank said it would consider the need for more monetary easing in light of lower inflation and a contraction of the economy.
Interest rates cut by 25 basis points is in line with a Reuters poll that expects Russia to reduce the cost of lending for the fourth time this world to the economic crisis caused by Covid-19 and isolation measures Year associated with it.
The central bank said that if the situation evolves in line with the basic expectation, the Bank of Russia will study the need for further reductions in key interest rates at its next meetings.
The bank also revised its economic forecasts. Currently, GDP is expected to shrink by 4.5 to 5.5 percent this year before regaining growth in 2021. The bank previously expected GDP to contract by four to six percent this year.
The annual inflation was close to 3.3 percent on July 20, to remain below the bank’s target of four percent.
The ruble fell slightly to 71.60 against the dollar after the rate cut, compared to levels at 71.56 recorded shortly before the monetary policy decision was issued.
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