In parallel with a quarter percentage point rate cut
In parallel with a quarter percentage point rate cut, the Central Bank of Russia revised its medium-term macroeconomic forecast.
Consensus
- The Central Bank of Russia reduced the key interest rate by 25 basis points.
- The Central Bank of Russia revised its medium-term macroeconomic forecast.
- Economic growth is projected to be lower, with the lower bound of the range dropping to zero.
- Inflation is expected to be 1.5 percentage points higher than previously forecast.
- The budget deficit for the year is projected to exceed 8 trillion rubles.
- Monetary financing (printing money) will be required to cover the budget deficit.
Points of divergence
- Economist Yegor Toropov stated that the recent rate cut will not significantly impact inflation, but has helped 'contain' it, with inflation expected to reach 4-5% by 2028. — vesti
- Analyst Yaroslav Kabakov predicted that the key interest rate could fall to 13.5% by year-end. — vesti
Coverage (5 sources)
- Alongside the quarter percentage point rate cut, the Central Bank of Russia revised the medium-term macroeconomic... — Вёрстка
- Bank of Russia lowers interest rate by quarter percentage point and revises medium-term macroeconomic forecast — Радио Свобода
- Expert Explains How Central Bank Policy Affects Inflation Reduction — Вести
- Gradual reduction of the key rate serves the interests of citizens and business — Вести
- Economist assesses how the Central Bank rate cut will affect the ruble exchange rate — Вести
Key entities
- Bank of Russia
- Moscow
- CB
- IT 'News'
- Egor Toropov
- National Research University
- Vesti
- BKS Mir Invesments
- Ilya Fedorov