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Bank of Russia Answers Putin's Call With Frontloaded Easing

  • Only six of 42 economists forecast rate cut of 50 basis points
  • Central bank says ‘potential’ for rate cuts remains unchanged
Updated on

Russia’s central bank signaled it will frontload interest-rate cuts after inflation slowed and President Vladimir Putin said the government is weighing measures to influence the ruble.

The Bank of Russia said its “assessment of the overall potential” for easing this year is unchanged after decreasing the one-week auction rate to 9.25 percent from 9.75 percent, according to a statement on Friday. Only six of 42 economists forecast the move. At the previous meeting in March, policy makers cut the benchmark by a quarter-percentage point after a six-month pause.