As expected the Central Bank of Russia (CBR) cut its key rate by 25 bp to 7.5% per annum — the first cut since March 2018, the regulator said in a press release following the board of directors meeting on June 14.
"On 14 June 2019, the Bank of Russia board of directors decided to cut the key rate by 25 bp to 7.5% per annum. Annual inflation slowdown is continuing. In May, households’ inflation expectations and business price expectations did not materially change and remain elevated. Economic growth in the first half of 2019 is lower than the Bank of Russia’s expectations. Short-term proinflationary risks have abated compared to March," the regulator said.
The ruble slightly strengthened against the dollar and the euro on the Moscow Stock Exchange after the CBR's decision to lower the key rate, according to the Moscow Exchange data.