Russian Central bank axes key interest rate to 7 per cent

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Russian Central bank axes key interest rate to 7 per cent

On Friday, the 6th of September 2019, the Central Bank of Russia slashed its key interest rate by 25-basis point to 7 per cent, remarking the third rate-cut this year, while Russia’s Central Bank had added that another cut on borrowing costs could come at the end of one of its three meetings this year.

In point of fact, latest interest rate-cut came amid a bruised economic backdrop both home and abroad, as the 6th largest economy in the world by purchasing power parity and 11th largest by nominal GDP, had been grappling with an en masse slowdown in inflation alongside a stagnation in the economic growth, both of which had contributed to latest interest rate-cut and forced the Central Bank of Russia to slash its full-year GDP forecast, meanwhile a slowdown in factory activity across the world had weighed on the natural resource-dependent economy of the transcontinental country in the Eastern Europe.

Aside from that, followed by a slash on interest rate on Friday (September 6th), Governor of Russian Central Bank, Elvira Napiolina had been quoted saying that the bank policymakers had been contemplating another rate-cut in a near-term outlook.

Although Governor Napiolina declined to comment on whether the Central Bank of Russia would be prepared for another rate cut as early as by the end of its next meet in October, however she added on Saturday (September 7th), “The main interest rate cut is likely at one of the next (three) meetings. ”