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Russia's central bank lowers interest rate to 8%

22 July 2022 15:01 (UTC +04:00)

The Bank of Russia (CBR) announced on Friday it has lowered its key interest rate by 1.5 percentage points from 9.5% to 8% per annum, APA reports citing Tele Trader.

"The current growth rate of consumer prices remains low, contributing to a further slowdown in annual inflation. This is due both to the influence of a set of one-off factors and the restrained dynamics of consumer demand. Inflation expectations of the population and businesses have noticeably decreased, reaching the levels of spring 2021. Business activity is declining slower than the Bank of Russia expected in June. However, external conditions for the Russian economy remain difficult and continue to significantly limit economic activity," the bank said in a statement.

The CBR added it will make further decisions on the key interest rate taking into account the trends in inflation, as well as potential risks from internal and external factors. The Board of Directors is scheduled to have its next meeting on the matter on September 16, 2022.