Russia's central bank has decided to cut the key interest rate by 150 basis points to 8 percent annually, the fifth consecutive cut since April. "The current consumer price hike," Xinhua news agency quoted the Bank of Russia as saying. The rate remains low, contributing to a further slowdown in annual inflation. This is due to both the impact of unilateral factors and a reduction in consumer demand."
The bank said it will consider the need for further rate cuts in the second half of 2022 and its next rate review meeting will be held on September 16. Russia has agreed to support financial and price stability and protect citizens' savings from depreciation Four days after it raised the key interest rate from 9.5 percent to 20 percent on February, it launched an invasion of Ukraine. The central bank lowered the rate to 17 percent on April 8, 14 percent on April 29, and May 26. 11 per cent and on June 10 it was reduced to 9.5 per cent.