The Bank of Russia’s board of directors on June 19 decided to cut its key interest rate by 0.25 percentage points, from 14.5% to 14.25% per year.
The new rate takes effect on June 22.
The central bank said underlying price growth had slowed somewhat, but inflation risks remained elevated. It also pointed to faster lending growth and a more stimulative fiscal policy than previously expected.
According to the regulator, those factors could require a higher interest rate path than projected in its April baseline scenario.