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Russia to Cut Rates

Russia to Cut RatesRussia to Cut Rates

The Russian central bank will continue its rate-cutting cycle next year, propping up consumer demand and the broader economy, a Reuters poll showed on Wednesday. After two years of recession, the economy is forecast to recover further in 2018, a year in which Vladimir Putin is widely expected to win elections to secure another presidential term. A monthly poll of 16 analysts and economists showed the oil-dependent Russian economy growing by 1.9% in 2018 after 1.7% this year. Growth will be aided by lower interest rates, making lending cheaper and spurring buying and investment. The poll showed the central bank is expected to bring its key rate to 7% by the end of next year, from 7.75 now. In the first quarter the central bank is seen trimming its key rate to 7.5%, according to the median forecast. Inflation, close to 17% in early 2015, is on track to hit a low of around 2.5% this year, the central bank said earlier this month.

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