Bank of Russia cuts key rate and moves to replenish foreign exchange reserves

Bank of Russia
Bank of Russia

The Bank of Russia today cut its key interest rate by 100 basis points to 11.5%, citing "persistent risks" of an economic slowdown and its expectation that inflation will drop to its 4% target in 2017 - but analysts warned the central bank's recent return to currency markets risks contradicting its inflation-targeting framework.

The cut to the one-week repo rate continues the bank's downward trajectory since a shock hike in December last year, which took its key rate from 10.5% to 17% in one day

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