Central Bank of Russia cuts policy rate by 300 bps to 11%
|The Central Bank of Russia announced on Thursday that it cut its policy rate by 300 basis points to 11% from 14%.
In its policy statement, the central bank noted that it holds open the prospect of additional rate reductions in its upcoming meetings.
Additional takeaways per Reuters
"Latest weekly data point to a significant slowdown in the current price growth rates."
"Funds continue to flow into fixed-term ruble deposits while lending activity remains weak."
"External conditions for the Russian economy are still challenging, considerably constraining economic activity."
"Financial stability risks decreased somewhat, enabling relaxation of some capital control measures."
"Annual inflation will decrease to 5-7% in 2023 and return to 4% in 2024."
Market reaction
With the initial reaction, the USD/RUB pair shot higher and was last seen rising 2.6% on the day at 60.9030.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.