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CBR Cites Notable Weekly CPI Slowdown & RUB Strength as Key to Rate Cut Decision

RUSSIA
  • STATEMENT: https://www.cbr.ru/eng/press/pr/?file=08042022_114...
  • External conditions for the Russian economy are still challenging, considerably constraining economic activity.
  • Financial stability risks are still present, but have ceased to increase for the time being, including owing to the adopted capital control measures. There is a steady inflow of funds to fixed-term deposits.
  • Annual inflation will continue to rise due to the base effect. Yet, the latest weekly data point to a noticeable slowdown in the current price growth rates, including owing to the ruble’s exchange rate dynamics.
  • The tightening of monetary conditions already in place is partly offset by the lending support programmes launched by the Government and the Bank of Russia, but it will continue to limit pro-inflationary risks.
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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