Russia’s central bank cut interest rates on Friday in a bid to cushion the economy from the impact of western sanctions, saying the recent rebound in the rouble had eased inflationary pressures.
The Bank of Russia said it would lower its key interest rate to 17 per cent from its previous high of 20 per cent. It had more than doubled borrowing costs in late February in an effort to prop up the currency after the US and western allies responded to President Vladimir Putin’s invasion of Ukraine with harsh financial measures including the freezing of a large chunk of its foreign reserves.
With Friday’s unscheduled move, the central bank is shifting its focus to kick-starting Russia’s struggling economy now that efforts to stabilise the financial system appear to be bearing fruit, analysts said.
“Today’s decision reflects a rebalancing of the risks of accelerating consumer price growth, declining economic activity and…
