Russia Cuts Key Rate to 14% as Kyiv Drone Strikes Stoke Inflation
Updated
Updated · Bloomberg · Jul 24
Russia Cuts Key Rate to 14% as Kyiv Drone Strikes Stoke Inflation
3 articles · Updated · Bloomberg · Jul 24
Summary
A 25-basis-point cut took Russia’s key rate to 14%, extending a yearlong easing cycle even as the central bank downgraded its growth outlook.
Ukrainian drone strikes on oil refineries and industrial targets have pushed fuel prices higher, adding inflation pressure while weakening business activity.
Business sentiment has deteriorated enough that Russia’s main industry lobby warned of coming bankruptcies, underscoring the strain on the broader economy.
The move marks Russia’s 10th rate cut since October 2024, with policymakers trying to support slowing growth while annual inflation still runs at 5.9%, above the 4% target.