Russian Central Bank cuts policy rate to 11%

In a statement made by the bank, it was stated that external conditions for the Russian economy remained challenging and hindered growth.

It was stated in the statement that the increase in inflation slowed down, the Russian ruble strengthened, the risks to financial stability decreased, and therefore some capital controls could be eased.

In the statement, which stated that annual inflation, which was 17.8 percent in April, decreased to 17.5 percent as of May 20, the Central Bank of Russia decided to lower the policy interest rate by 300 basis points to 11 percent. More rate cuts seem possible.” it was said.

The Central Bank of Russia increased the policy interest rate from 9.5 percent to 20 percent on February 28 due to the sanctions of Western countries. At the meeting held on April 29, the bank had finally lowered the interest rate to 14 percent.