- The ruble falls 0.4% against the U.S. dollar after the Bank of Russia cuts its key interest rate to 7.25% from 7.50% and signals that more cuts are likely as inflation and economic growth slow.
- “If the situation evolves in accordance with the baseline forecast, the Bank of Russia expects to lower the key rate at one of the next meetings and return to the neutral rate in the first half of 2020,” according to the central bank's statement.
- The neutral rate refers to the bank's 6%-7% interest rate target.
- One more cut would bring the key rate back to where it was before international sanctions and falling oil prices sent the Russian economy into a tailspin.
- Inflation rose less than expected at 4.7% in June, nearing the central, nearing the Bank of Russia's 4% goal.
- ETFs: RSX, RUSL, RUSS, ERUS