Central Banks
Russia Signals Rate Cuts May Be Over as Path Becomes Less Clear
- Central bank brings benchmark to 7.5% in sixth straight cut
- Inflationary risks rising while economy outperforms forecasts
The Bank of Russia headquarters in Moscow.
Source: Bloomberg
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Russia’s central bank signaled it’s close to taking a pause from easing monetary policy after delivering the smallest interest-rate cut of the current cycle, as renewed risks of inflation prompt more caution.
Governor Elvira Nabiullina said “we are close to the conclusion of the easing cycle,” with the central bank describing current monetary conditions as “overall neutral.” Earlier on Friday, policy makers lowered their benchmark to 7.5% from 8%, in line with the forecasts of most economists surveyed by Bloomberg.