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Russia Rates Come Full Circle Since War, With More Cuts in Doubt

  • Slower inflation, ruble gains, recession prompt deeper easing
  • Fourth straight rate cut bigger than forecast by most analysts
A gift shop in central Moscow. 

A gift shop in central Moscow. 

Photographer: Alexander Nemenov/AFP/Getty Images

Updated on

Russia’s central bank lowered interest rates to their level before the invasion of Ukraine but said the path of monetary policy will increasingly depend on how inflation fares while the economy adapts to sanctions.

Following a large cut at an extraordinary meeting two weeks ago, policy makers used their scheduled session on Friday to reduce the benchmark again, this time to 9.5% from 11%. A majority in a Bloomberg survey of 23 economists predicted a smaller reduction of 100 basis points.