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Bank of Russia’s Dovish Surprise Brings Rate Below Pre-War Level

  • Central bank reduces key rate to 8% in fifth straight decrease
  • Economy is shrinking after sanctions imposed over Ukraine war
Russia's central bank in Moscow, Russia.

Russia's central bank in Moscow, Russia.

Source: Bloomberg

Updated on

Russia’s central bank brought interest rates below their level before the invasion of Ukraine, seizing on steep slowdown in inflation to ease monetary policy more than forecast.

Policy makers lowered their benchmark to 8% from 9.5% on Friday and signaled they will consider further reductions in the second half of the year. The fifth straight cut was bigger than predicted by any of the economists surveyed by Bloomberg.