The Russian central bank made yet another interest rate cut today but warned that the pace of monetary policy easing may slow in the future. The Russian ruble fell after the central bank’s decision.
The Bank of Russia slashed its key interest rate by a whole percentage point to 11.5 percent today, continuing the easing cycle that it has started in January. As for its plans for the future, the central bank said in the statement:
The Bank of Russia will be ready to continue cutting the key rate as consumer price growth declines further in compliance with the forecast but the potential of monetary policy easing will be limited by inflation risks in the next few months.
The bank also said that the decline of Russian economy should slow next year, and it may even turn into growth if oil prices climb above the $70 level.
The Ruble dropped 0.84 percent to 54.7655 as of 12:37 GMT today.
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