Central bank of Russia cuts refinancing rate to 7.75%

The Central bank of Russia has cut the key refinancing rate by 25 basis points to 7.75%

The 14th consecutive rate cut over the last 15 months saw the Central bank also trim the 1 and 7 day repurchase rates to 6.75%, but leave the overnight deposit rate at 2.5%.

In a statement the bank said that the external environment for the Russian economy remained volatile, with potential for instability, and said the move had been made possible by the continued fall in inflation to 5.7% on May 25, with the bank considering that the risk of a surge in inflation in the coming months to be minor.

The bank added that its economic data was showing a gradual economic rebound, with increases in investment, real incomes and retail turnover, creating a positive outlook for domestic demand, and the labour market.

The bank also noted that it foresaw rates remaining steady for the coming months and added that the volatility in the rouble exchange rate over recent weeks was within its policy parameters.