Russia’s rates cut does not presage shift in stance
Experts say central bank remains alert to inflation risks and will maintain ultra-restrictive policy
The Bank of Russia on June 6 decided to cut rates by 100 basis points to 20%. However, experts tell Central Banking that the cut – the bank’s first since 2022 – does not mark the beginning of the end of its ultra-tight monetary policy.
“This is not the beginning of an easing cycle,” says Alexander Kolyandr, senior fellow at think-tank the Center for European Policy Analysis. “It’s a one-off adjustment reflecting the fact that inflation peaked at the end of April or in early May. Seasonally
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