Russia reduces interest with 100 bps of 20 years high; Warns tight policy will remain – times of India

The Central Bank of Russia lowered its benchmark interest on Friday to 20 percent, so that it was relaxed of a peak of two decades of 21 percent as signs of economic cooling and relaxation of the price pressure emerged.The move marked the first interest rate of the regulator since September 2022 and followed growing calls from companies and political neighborhoods that said that the high loan costs were the investments and the retention of growth.According to AFP, the bank said in a statement that the economy ‘gradually returned to a balanced growth path’, while also warned that monetary policy would remain ‘for a long period’.Inflation remains above 10 percent, but the central bank noted that the price pressure “continues to fall”. Russia officially focuses on inflation at 4 percent, but only expects to return to that level 2026.Since the full offensive on Ukraine started in 2022, the Russian economy has had to deal with intense volatility. The Kremlin generated military editions to support the war effort, funds in weapon production and troop logistics – a push that temporarily improved growth despite sweeping Western sanctions.Friday’s movement follows months of policy pressure, where the central bank runs a cord between supporting growth and containing inflation risks.