Amid what has been widely viewed as an intransigent resilience from the Russ economy, the Central Bank of Russia had slashed its benchmark borrowing cost further by 50 bps (basis percentage points) to 7.50 per cent, illustrating that the Central Bank’s rate-cutting cycle would likely to continue as inflationary pressure has been decreasing at a breakneck pace.
On top of that, the Central Bank of Russia signalled on Friday that its Consumer Prices Index might soon fall into a single-digit figure, as the Central Bank is now expecting the transcontinental country’s CPI to rise between 11 to 13 per cent this year, sharply down from a prior forecast between 13 to 15 per cent.
Russian Central Bank slashes key rates further by 50bps
Besides, adding to further evidence that the Russian Central Bank might stay at its current course to slash interest rates aggressively, Governor Nabiullina had proffered no precise signal on when the easing cycle might come to an end, as major economies across the globe including the Group of Seven (former Group of Eight) nations have been hiking their benchmark borrowing costs aggressively in order to grapple with a staggering inflation-surge.
Aside from that, Governor Nabiullina did not rule out the possibility of a rate-cut in a near-term either. Meanwhile, following the announcement of another rate-cut from the Central Bank of Russia, the Central Bank’s Governor Elvira Nabiullina said in a press briefing, “As we are close to the end of the easing cycle, we accept that the next step, as well as holding the rate, could be a hike.
However, we do not rule out a rate cut either”. Russian Central Bank had slashed its benchmark lending rate by 1250 bps in less than six months, as the Russian Rouble becomes the best-performing currency of the year, gaining as much as 18.89 per cent against its American peer year-to-date.