INSUBCONTINENT EXCLUSIVE:
Russia's Central Bank said Friday it was cutting its key interest rate for a second straight time as risks of price rises and financial
instability were no longer rising.The Bank of Russia said it was slashing the rate from 17% to 14% from next week, a greater cut than
emergency measures due to Russia's military action in Ukraine.The bank had hiked the rate to 20% in late February, four days after President
Vladimir Putin sent in troops.This came after Western nations imposed sanctions that largely cut Russia's financial sector off from the
global economy.The Central Bank cut the interest rate to 17% earlier this month, however, saying that risks to financial stability had
"ceased to increase" for now.Analysts surveyed by Russian media had largely predicted a 15% cut for the latest rate decision."It now looks
Central Bank nevertheless struck a cautious note, saying the country's economy faces a "challenging" situation due to sanctions and could
see a sharper decline than its base scenario predicts."We are in a zone of colossal uncertainty," both in terms of supply and demand, the
of dollar-denominated debt in local currency would constitute a sovereign default, the country's first in decades.Nabiullina insisted that
the Finance Ministry has resources to make such payments and "from the economic point of view, there cannot be any talk of default," while
released a baseline forecast for this year for imports to fall by up to 36.5% and exports by up to 21%.It said Friday that while still high,
Central Bank predicted that inflation would peak at up to 23%, before slowing next year.The bank has set an inflation target of four
bank said its monetary policy would also focus on the need for a "structural transformation of the economy" given the changed
circumstances.The next meeting to discuss a rate change will be June 10, as the bank said it sees room for further rate reduction this
year.Analysts surveyed by Russian media had largely predicted a 15% cut for the latest rate decision.The Central Bank nevertheless struck a
cautious note, saying the country's economy faces a "challenging" situation due to sanctions and could see a sharper decline than its base
restrictions.It released a baseline forecast for this year for imports to fall by up to 36.5% and exports by up to 21%.The Central Bank said
against the dollar and the euro in March, from which it has since rebounded.The Central Bank predicted that inflation would continue to grow
agencies have downgraded Russia and warned that payments of dollar-denominated debt in local currency would constitute a sovereign default,
the country's first in decades.Central Bank Governor Elvira Nabiullina was set to give a press conference later Friday.The next meeting to
discuss a rate change will be June 10, as the bank said it sees room for further rate reduction this year.
