The Russian central bank has slashed its key interest rate from 14% to 12.5% due to “signs of stabilisation in annual inflation”. Since the collapse of the oil price last year and the onset of international sanctions due to Russia’s involvement in the ongoing crisis in Ukraine the Russian central bank has been caught between the vice of high inflation and slowing growth. However, in recent months the country has started to exceed expectations on the former, allowing the central bank to ease its headline policy rate more quickly than many expected. As the CBR said in its statement today: …read more
Source: Business Insider
