The Central Bank cut the key rate to a new historical low

The Central Bank lowered the key rate by 0.25 percentage points, from 4.5 to 4.25 percent per annum. This is already the third rate cut since the beginning of the pandemic and a new historical low of its value.

In the message about the rate cut, the Central Bank notes that “the trajectory of further economic recovery may be unstable due to the fall in incomes, restrained consumer behavior, cautious business sentiment, as well as constraints from external demand.” According to the current forecast, inflation will be 3.7–4.2 percent this year, and 3.5–4.0 percent next year.

The head of the Central Bank, Elvira Nabiullina, announced at the end of June that the a href="https://www.gjacip.ru/ipoteka/">mortgages in Russia fell in May immediately to 0,