The Central Bank lowered the key interest rate to a new historical low of 4.25% per annum
"On July 24, 2020, the Board of Directors of the Bank of Russia decided to reduce the key interest rate by 25 basis points to 4.25% per annum. Disinflationary factors continue to have a significant impact on inflation", the Central Bank said.
The regulator noted that if the situation develops in accordance with the basic forecast, the Bank of Russia would assess the feasibility of further reducing the key rate at the next meetings.
The Bank of Russia registers a reduction in interest rates on loans and deposits. "The decisions taken by the Bank of Russia to reduce the key interest rate and a significant decrease in profitability on the Federal loan bonds market compared to the levels of March - April create conditions for further reduction of interest rates in other segments of the financial market", the report notes.
At the same time, since the last Board of Directors, the dynamics of interest rates in various segments of the domestic financial market has been multidirectional. Credit and Deposit rates decreased, including under the influence of earlier decisions to reduce the key interest rate, said in the Central Bank.
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