News In Brief World News
News In Brief World News

Russia cuts Interest Rate again as Ruble Recovers

Share Us

304
Russia cuts Interest Rate again as Ruble Recovers
02 May 2022
6 min read

Podcast

News Synopsis

As the Russian currency Ruble makes recovery, the Central Bank of Russia slashed interest rates on Friday for the second time in the month of April. However, the Bank has warned that the economy will crash this year. The latest cut brought down interest rates to 14% from 17%, following a reduction from 20% on April 8. After Russia invaded its neighbor Ukraine in the month of  February, the Central Bank of Russia increased interest rates to 20% from 9.5% in a bid to stabilize the plunging ruble.

On Friday, the CBR stated that the ruble has recovered significantly to pre-war levels. Russia has stabilized the currency through stringent capital controls that in turn have made the ruble one of the top-performing currencies across the globe. On Friday the ruble was down 2% but at 72 rubles equaling one US dollar, the exchange rate still tops the rate of 80 to the dollar just before the conflict between Russia and Ukraine started. At its lowest level in the month of March, the Russian currency had traded at 120 to the dollar.

TWN In-Focus