World News | Ruble on Mend, Russia Bank Cuts Interest Rate
Get latest articles and stories on World at LatestLY. Russia's central bank says it's lowering a key interest rate, and said more cuts could be on the way.
London, Apr 8 (AP) Russia's central bank says it's lowering a key interest rate, and said more cuts could be on the way.
The decision indicates the bank thinks strict capital controls and other severe measures are stabilizing Russia's currency and financial system despite intense pressure from Western sanctions over the war in Ukraine.
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The bank said Friday it lowered its benchmark rate from 20% to 17%, effective Monday. It had raised the rate from 9.5% on Feb. 28 -- four days after the invasion -- as a way to support the ruble's plunging exchange rate.
A currency collapse would worsen already high inflation for Russian shoppers by ballooning the cost of imported goods.
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The rate increase shows how the central bank has managed to stabilize key aspects of the economy with severe controls, artificially propping up the ruble to allow it to rebound to levels seen before the invasion of Ukraine — even as the West piles on more sanctions. (AP)
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)