Russia’s central bank may cut rates if current trends continue

MOSCOW

The Bank of Russia will consider cutting rates at its next meeting if the current trends in the country’s economy persist, Governor Elvira Nabiullina said during the bank’s financial congress.

Nabiullina said the bank will act carefully with data in mind but a rate cut is still not guaranteed, but it will be considered if the current economic trends continue.

She reiterated the bank’s opposition to cryptocurrencies to be used in domestic payments.

Nabiullina said the bank deems cryptocurrencies volatile and risky, though their use in foreign economic activities, especially as a means of investment, is allowed, but the Bank of Russia is not considering investing in cryptocurrencies.

The Bank of Russia lowered its policy rate for the first time since September 2022, reducing it from 21% to 20% on June 6.