The Central Bank of Russia (BCR) reduced its key rate at 18% this Friday, July 25. This two -point decrease is the most marked since 2022, faced with the growing fears of a slowdown in the country’s economy.
The Russian Central Bank had begun its drop in rates in June despite inflation that affects Russia and was still bordering 10% last June. Price dynamics is shown in a massive military expense to carry out the conflict in Ukraine and a serious shortage of labor.
Close to falling into the recession
But the high rates have affected companies, some of the greatest business leaders in the country pressure on the central bank to soft their monetary policy.
In mid -June, the Minister of the Economy had warned that The Russian economy was “on the edge” of the recession And that his bouncing capacity depended on the “decisions” made by the Russian State and the Central Bank, in particular in relation to the fees.
Source: BFM TV
