Russia lowers interest rate to 8 pct-Xinhua

Russia lowers interest rate to 8 pct

Source: Xinhua

Editor: huaxia

2022-07-22 21:57:29

MOSCOW, July 22 (Xinhua) -- Russia's central bank decided on Friday to cut the key interest rate by 150 basis points to 8 percent per annum, the fifth reduction in a row since April.

"Current consumer price growth rates remain low, contributing to a further slowdown in annual inflation. This is due to both the influence of a set of one-off factors and the subdued consumer demand," the Bank of Russia said in a statement.

The bank said it will consider the necessity of further rate cuts in the second half of 2022, and its next rate review meeting will be held on Sept. 16.

Russia drastically raised the key interest rate from 9.5 percent to 20 percent on Feb. 28 to support financial and price stability and protect the savings of citizens from depreciation, days after it launched a special military operation in Ukraine.

The central bank slashed the rate to 17 percent on April 8, to 14 percent on April 29, to 11 percent on May 26 and to 9.5 percent on June 10.