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CBR Cuts Rates By a Larger-Than-Expected 150bps

RUSSIA

The Bank of Russia cut rates by more than expected, cutting the key rate from 9.50% to 8.00% vs. Exp. 9.00%.


CBR statement here: https://www.cbr.ru/eng/press/pr/?file=22072022_133...


Statement highlights:

  • The Bank of Russia will consider the necessity of key rate reduction in the second half of 2022.
  • Annual inflation will edge down to 12.0–15.0% in 2022, to 5.0–7.0% in 2023, and return to 4% in 2024.
  • The Bank of Russia forecasts GDP decline by 4.0–6.0% in 2022.
  • 2023 will still be negative to total (-4.0)—(-1.0)% to reflect the base effect of 2022 Q1 and a more prolonged output reduction. In 2024, GDP growth is expected within the range of 1.5–2.5%.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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