Bank of Russia Set to Keep Slashing Key Rate as Economy Cools

The Bank of Russia is poised to continue steep rate cuts as the economy cools faster than expected, with growth at risk of undershooting official targets this year.

Policymakers will lower borrowing costs by 200 basis points for a second straight meeting on Friday, fully unwinding last year’s tightening cycle, according to the median expectation of economists surveyed by Bloomberg. One of the nine polled expects the interest rate to stay at 18%, while another sees a reduction of 100 basis points.