Russia’s central bank cut interest rates for the fifth consecutive time on Friday, to 8%, a level below where it was before the invasion of Ukraine (9.5%).
The decision came just hours after the leader of the European Central Bank announced an interest rate hike (to fight high inflation), in what may have been a way for the Kremlin to signal of normalcy and will contrast with a Europe that is in a situation of great economic uncertainty and is raising interest rates faster than expected.
After raising interest rates to around 20% at the beginning of the invasion, Russia lowered interest rates several times in a row. In June, the central bank raised interest rates to 9.5%, the same level they were at before the invasion, but now there is another 150 basis point cut to 8%. Analysts forecast there could be a cut, but only by 50 basis points, to 9%.
The blow that the invasion of Ukraine is dealing to the Russian economy (and how Putin tries to hide it)
Source: Observadora
