Russian Central Bank Cuts Key Rate to 14.25%
The Russian Central Bank lowered its key interest rate by 25 basis points to 14.25%, the ninth consecutive cut, though less than the expected 50 basis points. High inflation expectations persist due to the global energy crisis from the Iran war and Ukrainian drone attacks on Russian oil infrastructure.
Russia's Central Bank lowered its key interest rate from 14.5% to 14.25% on Friday, marking its ninth consecutive cut since beginning a policy of monetary easing after previously hiking borrowing costs to a two-decade high to curb surging inflation.
The 25-basis-point cut signaled that policymakers are taking a more cautious approach in easing rates than initially anticipated, as analysts had broadly expected a larger, 50-basis-point cut.
Inflation expectations remain high due to the global energy crisis sparked by the war in Iran, as well as Ukrainian drone attacks on Russian oil refineries and supply lines, which have led to a gradual uptick in gasoline prices and shortages in some parts of the country.
This is a developing news story.
