Russia cuts rates by quarter point

The Central Bank of Russia (CBR) cut its key interest rate by a quarter point today and signalled that further cuts may follow.

The refinancing rate of the central bank was dropped to 10.5%, its sixth reduction since the end of April.

In a statement the CBR said while further rate cuts were likely in the short-term it continues to prioritise tackling inflation. The cuts, however, suggest that credit conditions in the country remain tight despite political pressure being employed to push forward a recovery in bank lending.

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