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CBR slashes rates and shifts its focus

Russia’s central bank (CBR) cut its policy rate by another 300bp to 14.0% today and the communications suggest that the CBR is now more focused on boosting credit growth than it has been in the past. This shift in the CBR’s policy framework is likely to mean lower real interest rates than in the years before the pandemic and slightly higher inflation than might otherwise be the case.
Liam Peach Emerging Markets Economist
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