24.04.202011:16:00UTC+00Russia Cuts Key Rate By 50 Bps

Russia's central bank reduced its key interest rate by 50 basis points to combat the economic downturn caused by the coronavirus.

The Board of Directors, led by Governor Elvira Nabiullina, decided to reduce the benchmark rate to 5.50 percent from 6.00 percent.

The bank had reduced its rate by a quarter-point in February.

The restrictive measures taken to contain the spread of coronavirus and fall in oil prices added downward pressure on inflation, the bank noted.

Inflation is forecast to average 3.8-4.8 percent this year and stabilizes near 4 percent in the future. The bank expects GDP to fall 4-6 percent this year.