Russian Central Bank Cuts Rates to 11.5%

Russia has cut its main interest rate from 12.5% to 11.5% as inflation eases.
In a statement the country’s central bank said it had lowered its one-week minimum auction repo rate by 1 percentage point.

Inflation eased from a high of 16.9% in March to 15.8% in May.

The bank also repeated that it was concerned about a “considerable” cooling of the economy. It said it expected gross domestic product to contract by 3.2% this year.

The Russian rouble was little changed after the rate decision as it was in line with analyst predictions.

Interest rates had hit 17% last December in an emergency move to halt a run on the rouble.
Russia’s economy is being squeezed by Western sanctions over the situation in Ukraine, and a fall in global oil prices.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza