The Central Bank for the first time lowered its key rate to 4.5%
The board of directors of the regulator at a meeting on June 19 reduced the key rate from 5.5% to 4.5%. This is the lowest level since the Bank of Russia introduced the key rate as the main indicator of monetary policy in 2013.
Today, the regulator notes, inflation has returned to its previous course after rising prices between March and April. In addition, in the coming months, the dynamics of consumer prices will be restrained by the strengthening of the ruble, which was observed in early June against the background of stabilization of oil prices. The Bank of Russia did not rule out that inflation could be at the level of 4% or lower.
At a previous meeting of the Central Bank Board of Directors on April 24, the key rate was reduced from 6% to 5.5%. Previously, the bid was saved.
Before the coronavirus infection pandemic was announced in the world, the Bank of Russia lowered its key rate by 0.25% to 6% per annum.
It should be noted that after the regulator lowered the rate in April, interest on ruble deposits in the ten largest Russian banks began to decline. The Central Bank assured that the decision to reduce the key rate was made in order to maintain the interest of Russians in credit products. The reduction in the key rate will not affect the interest on the deposit, the Bank of Russia promised.