Russian CB cuts key interest rate

The Russian central bank cut its key interest rate by 200 basis points to 18% on Friday, hoping to revive lending and boost flagging economic growth after stubbornly high inflation showed signs of easing.

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The move is the biggest decrease since May 2022, when the central bank cut by 300 bps as the economy was recovering from the shock from Western sanctions imposed following the launch of Russia’s military action in Ukraine.

The latest reduction was in line with a Reuters poll of 27 economists, and comes after Russian business leaders and some government officials complained that high interest rates were strangling the economy.