Central Bank of Russia again reduced the key rate – up to 18 percent

At the July meeting, the Board of Directors of the Bank of Russia reduced a key rate from 20 to 18 percent – at 200 base points, the Russian Radio Liberty Service reports.

It the second decrease in the rate in a rowit occurs against the background of slowing the growth of the economy, cooling demand and reducing inflation.

In his message, Central Bank notes a reduction in the increase in labor deficiency and a decrease in demand for it, a decrease in wage growth. Economists record the slowdown in the Russian economy from the beginning of the year after its overheating due to the growth of military production.

From October to April, the key rate has kept at the highest since the early 2000s-21 percent. In 2021, before a full -scale invasion of Ukraine, it decreased to 4.5 percent.

The interest rate depends on the percentage to which the Central Bank credits Russian banks. The more expensive the banks cost, the more expensive their loans for business and the population. High percentage reduces consumption and economic growth, but retains inflation.

In June, the Russian Central Bank reported a decline The key rate on loans from 21% to 20%.