World Economy

Russia Cuts Interest Rate

Russia Cuts Interest RateRussia Cuts Interest Rate

Russia’s central bank has, as predicted, cut its key rate from 10.5% to 10%, Zero Hedge reported. This is consistent with the continuing rapid fall in inflation. With inflation zero in the first two weeks of September after being zero in the last week of July and through most of August, its annualized rate is now just 6.6%. The central bank has said that it intends to keep its key rate 3% above the annualized rate of inflation for the foreseeable future, so that with annualized inflation running at 6.7% it had the space to announce this rate cut.