Russian Central Bank cuts key rate to 14 percent per annum

The Bank of Russia has decided to cut its key rate by 25 basis points to 14% per annum, according to the regulator’s press release following its board meeting.

The Central Bank reduced the key rate by 25 basis points to 14% per annum.

The regulator noted though that a smoother key rate decrease is required given the direct and second-round effects of the temporary decline in production capacities in certain sectors and more expansionary fiscal policy over a three-year horizon than projected in April.

Considerable price growth and higher inflation expectations in the summer months were mainly associated with one-off factors, according to the press release.