Russia Central Bank Cuts Interest Rate By 200 Bps

(RTTNews) - Russia's central bank slashed its benchmark rate by 200 basis points on Friday citing faster than expected fall in inflationary pressures and slowing domestic demand.

The Board of Directors of Bank of Russia reduced the key rate to 18.00 percent from 20.00 percent.

The bank had reduced the rate by 100 basis points in June, which was the first reduction since 2022.

The board said current inflationary pressures are declining faster than previously forecast and domestic demand growth is slowing. Policymakers said the economy continued to return to a balanced growth path.

Further, the board said it will maintain monetary conditions as tight as necessary to return inflation to the target next year.