On Friday, Russia’s central bank revised interest rates to 9. 5 percent, as it did in February before Russia’s invasion of Ukraine, a sign that inflation in Russia would likely have peaked after hitting a two-decade high after the country hit. Western sanctions.
The central bank cut interest rates across 150 core issues on Friday, down from 11% previously, in the latest circular of cuts since the key rate rose to 20% on Feb. 28.
In a press release, Russia’s central bank stated that the external environment of the country’s economy remains “challenging and limited economic activity. “
Despite this, the regulator said inflation is slowing faster and the country’s economic decline less than expected in April.
The central bank said annual inflation as of June 3 stood at 17 percent, up from a two-decade high of 17. 8 percent in April.
Inflation is expected to range from 14 to 17 through the end of 2022, then fall back to 5-7 in 2023 before returning to four a year later, the regulator added.
57. 03. This is the exchange rate of the ruble against the dollar on Friday morning. The Russian currency hit an all-time low of 150 against the dollar in early March, but has since controlled its recovery, thanks to the Kremlin’s resolve to seriously limit cash transfers and other measures.
While economists remain skeptical about the ruble’s resilience, global corporations that were forced to leave Russia because of the sanctions suffered heavy losses. According to a Wall Street Journal report, the roughly 1,000 Western corporations that left Russia collectively face more than $59 billion in losses. Among the hardest hits are oil corporations like BP and ExxonMobil, which have posted losses of $25. 5 billion and $3. 4 billion so far, respectively. the country’s airlines through corporations such as Ireland’s AerCap Holdings, which cancelled around $2. 7 billion.
Russia takes its key interest back to the pre-war point (CNBC)
Russia’s Industry Losses Exceed $59 Billion as Sanctions Hit (Wall Street Journal)