Bank of Russia Cuts Key Rate to 20% from 21% – Markets Surprised by Dovish Tilt
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The Bank of Russia unexpectedly lowered its key interest rate to 20%, signaling a more accommodative stance amid ongoing economic strain.
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Market reaction: The ruble weakened against the US dollar following the decision, reflecting concerns over inflation and geopolitical uncertainty.
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Backdrop: The Russia-Ukraine war continues to weigh on the Russian economy. Growth is increasingly dependent on manufacturing and heavy state intervention, as sanctions and isolation from global markets persist.