Central Bank of Russia cuts key rate

The Central Bank of Russia has reduced its key interest rate to 15.5%, following a meeting of its Board of Directors.

The rate was cut by 50 basis points, down from 16%.

"The economy continues to return to a trajectory of balanced growth,"

the Central Bank stated.

While price growth accelerated notably last month, the regulator attributed this to one-off factors, emphasizing that the sustainable indicators of current price growth have not changed significantly. Once these temporary effects subside, inflation is expected to decline further.

The Central Bank noted that future decisions on rate cuts will depend on sustained inflation moderation and evolving inflation expectations, to be assessed at upcoming board meetings.