Putin Signals Rate Cut From 14.5% Next Week as Russian Inflation Slips Above 5%
Updated
Updated · Reuters · Jun 10
Putin Signals Rate Cut From 14.5% Next Week as Russian Inflation Slips Above 5%
3 articles · Updated · Reuters · Jun 10
Summary
June 19 is now the focal point after Putin said Russia has grounds to cut its key rate again, signaling support for easier policy at the central bank’s next meeting.
Inflation has fallen to just above 5%, Putin said, arguing the bank’s earlier tightening delivered results even after businesses attacked last year’s jump to 21%.
Elvira Nabiullina missed Wednesday’s meeting and two recent public appearances, including the St Petersburg forum, with the central bank saying she is on sick leave.
Russia’s economy contracted 0.2% in the first quarter, and officials blame high borrowing costs, sanctions and a strong rouble as the government searches for ways to revive growth.
The central bank has already cut rates to 14.5%, while the economy is expected to grow only 0.4% this year after slowing sharply from 4.9% in 2023 to 1% in 2025.