Russian officials predict that the ruble exchange rate will gradually fall with interest rates

Xinhua News Agency, Moscow, July 23 (Reporter Liu Kai) Ivan Abramov, vice chairman of the Economic Policy Committee of the Russian Federal Council (Parliament) Economic Policy Committee, said on the 23rd that the Russian Central Bank may have reduced interest rates during the year. With interest rates fell gradually.

Russia's Xinshi quoted Abramov as saying that the Russian central bank's benchmark interest rate may fall to 5%in this fall or before the end of the end of the year, which helps to provide more loans for Russian companies and residents and promote the domestic economy.

Abramov said that the ruble exchange rate has continued to strengthen recently, which has put a lot of pressure on economic production. He predicts that as the benchmark interest rate is reduced, the ruble exchange rate will also weaken, falling to the level before the upgrade of the Ukrainian situation.

The Russian central bank announced on the 22nd that the benchmark interest rate was reduced by 150 basis points to 8%. At the end of February this year, the Russian Central Bank increased the benchmark interest rate to 20%, which has been reduced many times since then.

After Russia announced special military operations on February 24, the ruble began to depreciate rapidly, fell below 80 to 1 on the day of the US dollar exchange rate, and fell below 120 to 1 on March 9, a record low. As Russia adopts various measures to respond to sanctions, stabilizes the financial market, and boost market confidence, the exchange rate of the ruble has gradually recovered. On July 23, the exchange rate of the ruble to the US dollar was 57.39 to 1, and the exchange rate of the euro to the euro was 57.76 to 1.

[Editor in charge: Liu Yang]

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