Bank of Russia lowers key rate to 14%

Following the regular meeting of the Board of Directors, the Bank of Russia (Central Bank) decided to reduce the key rate to 14% per annum from 17% set at the beginning of April, Report informs referring to the press service of the regulator.

“On April 29, 2022, the Board of Directors of the Bank of Russia decided to reduce the key rate by 300 bp, to 14% per annum,” the Central Bank reports.

In early April, the regulator also decided to reduce the key rate by 300 bp to 17% per annum.

At the end of February, against the backdrop of the start of a special operation in Ukraine, the Bank of Russia sharply raised the rate to 20% per annum.

“The external environment for the Russian economy remains difficult and significantly limits economic activity. Risks to price and financial stability have ceased to grow, which created the conditions for a key rate cut. The latest weekly data indicate a slowdown in current price growth rates due to the strengthening of the ruble and cooling consumer activity,” says the regulator.