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Russian Central Bank lowers key rate to 4.5%

© Gavriil Grigorov/TASS

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Russian Central Bank sees potential for key rate reduction to support economy

MOSCOW, June 19. /TASS/. The Bank of Russia has cut the key rate by 1 percentage point (p.p.) at once for the first time since 2015 to 4.5% per annum amid more profound disinflationary factors than expected, the regulator said in a statement following its board meeting on Friday.

"On 19 June 2020, the Bank of Russia decided to cut the key rate by 100 bp to 4.50% per annum. Disinflationary factors have been more profound than expected due to a longer duration of restrictive measures in Russia and across the world. The effect of short-term pro-inflationary factors has been largely exhausted," the statement said.

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