AGL 38.50 Increased By ▲ 0.93 (2.48%)
AIRLINK 131.41 Decreased By ▼ -1.09 (-0.82%)
BOP 5.59 Decreased By ▼ -0.05 (-0.89%)
CNERGY 3.83 Increased By ▲ 0.06 (1.59%)
DCL 8.67 Decreased By ▼ -0.20 (-2.25%)
DFML 40.75 Decreased By ▼ -0.25 (-0.61%)
DGKC 89.05 Decreased By ▼ -1.11 (-1.23%)
FCCL 35.27 Increased By ▲ 0.19 (0.54%)
FFBL 66.45 Decreased By ▼ -0.05 (-0.08%)
FFL 10.49 Increased By ▲ 0.34 (3.35%)
HUBC 109.70 Increased By ▲ 3.30 (3.1%)
HUMNL 14.66 Increased By ▲ 1.26 (9.4%)
KEL 4.82 Decreased By ▼ -0.04 (-0.82%)
KOSM 7.02 Increased By ▲ 0.17 (2.48%)
MLCF 42.26 Increased By ▲ 0.46 (1.1%)
NBP 59.06 Increased By ▲ 0.48 (0.82%)
OGDC 183.70 Increased By ▲ 2.45 (1.35%)
PAEL 25.55 Decreased By ▼ -0.15 (-0.58%)
PIBTL 5.91 Increased By ▲ 0.08 (1.37%)
PPL 147.30 Decreased By ▼ -1.10 (-0.74%)
PRL 23.54 Increased By ▲ 0.32 (1.38%)
PTC 16.57 Increased By ▲ 1.33 (8.73%)
SEARL 69.48 Increased By ▲ 0.69 (1%)
TELE 7.21 Decreased By ▼ -0.03 (-0.41%)
TOMCL 35.72 Decreased By ▼ -0.28 (-0.78%)
TPLP 7.57 Increased By ▲ 0.17 (2.3%)
TREET 14.15 Decreased By ▼ -0.09 (-0.63%)
TRG 50.75 Decreased By ▼ -0.10 (-0.2%)
UNITY 26.87 Increased By ▲ 0.47 (1.78%)
WTL 1.22 Increased By ▲ 0.01 (0.83%)
BR100 9,805 Increased By 37.5 (0.38%)
BR30 29,768 Increased By 367.7 (1.25%)
KSE100 92,296 Increased By 358.5 (0.39%)
KSE30 28,824 Increased By 79.9 (0.28%)

Russia’s central bank cut its key interest rate to the pre-crisis level of 9.5% on Friday and said it would continue to explore the scope for more cuts as inflation slows from near 20-year highs and economic contraction looms.

The bank had hiked its rate from 9.5% to 20% in the immediate aftermath of Moscow’s despatch of armed forces into Ukraine on Feb. 24, but had since cut rates three times in steps of 300 basis points - the last of them two weeks ago.

Friday’s rate cut exceeded average expectations of a 100-basis-point move in a Reuters poll from earlier this week.

“The Bank of Russia will consider the necessity of a key rate reduction at its upcoming meetings,” the bank said in a statement.

The latest cut brought the key rate far below annual inflation, which stood at 17.0% as of June 3, according to the central bank.

It has said it hopes inflation will fall to its 4% target in 2024.

It revised its inflation forecasts and now expects consumer prices to increase by 14-17% in 2022 compared with its previous forecast of an 18-23% rise.

Russian central bank plays down role of dollar and euro at home and globally

“Current inflation is appreciably below the Bank of Russia’s April forecast,” it said.

High inflation dents living standards and has been one of the key concerns among Russians for years, but Russia needs cheaper lending to help the economy overcome sweeping Western sanctions.

The central bank said a decline in economic activity in the second quarter was less pronounced than expected, and that the full-year contraction could also be lower than it forecast in April.

The economy grew by 4.7% in 2021. Central Bank Governor Elvira Nabiullina will shed more light on the bank’s forecasts and policy plans in a media briefing at 1200 GMT.

The next rate-setting meeting is scheduled for July 22.

Comments

Comments are closed.