Central Bank of Russia cuts rates from 14 to 11%

(ANSA) - MILAN, MAY 26 - The Russian Central Bank has cut interest rates from 14 to 11% and could cut them further "in the next meetings" if the trend of inflation allows it.

    "The latest weekly data - states the institute - highlight a significant slowdown in the current rate of price growth. Inflationary pressures are easing in the wake of the dynamics of the ruble exchange rate and the significant decline in inflation expectations of households and businesses. In April annual inflation reached 17.8%, however, based on estimates as of May 20, it slowed to 17.5%, falling faster than in April forecasts. "

    The Russian Central Bank "therefore" keeps "open the prospect of a new rate cut in the next meetings" starting from that of 10 June.

"In its rate decisions, the Bank of Russia will take into account the current and expected inflation dynamics relating to the target and the processes of economic transformation, as well as the risks posed by domestic and external conditions and the reaction of the financial markets", explains the institute, which inflation is expected to reduce to 5-7% in 2023 and to 4% in 2024.

    Meanwhile, "the external conditions for the Russian economy are still challenging, significantly limiting economic activity" while "the risks of financial stability are certain way down,