For the first time in two and a half years, the Central Bank lowered its key interest rate on 6 June. However, this move is largely symbolic and does not indicate that the Russian economy is firmly on the path of disinflation. On the one hand, cutting the rate by one percentage point, from 21% to 20%, will not have a significant impact on lending to the economy. A more meaningful cut would have brought it down to at least 19%. On the other hand, this step serves as a compromise, signalling th...
