Extraordinary interest rate cut by the Central Bank of Russia

An extraordinary rate cut decision came from the Central Bank of Russia.

The bank cut the policy rate by 300 basis points to 17 percent.

The Bank pointed out that additional interest rate cuts are possible in the upcoming meetings.

After the invasion of Ukraine, the bank increased the policy rate from 9.50 percent to 20 percent with a shock rate increase.

Thus, the policy rate in the country reached the highest level in 20 years.

Hours before the scheduled meeting of the Central Bank of Russia, Russian President Vladimir Putin had re-nominated the current president, Nabiullina.

After Russia's operation against Ukraine, Russia faced many economic sanctions, especially the restriction of the use of reserves, while the Central Bank of Russia announced many measures, including foreign exchange control.