Russian central bank cuts key interest rate despite rising inflation
Russia's central bank delivered a modest interest rate cut on July 24, despite a spike in inflation driven by spiralling fuel prices triggered by mass Ukrainian strikes on refineries.
The bank cut its key rate to 14 percent from 14.25 percent, it said in a press release, also slashing its annual gross domestic product forecast as pressure mounts on Russia's war economy.
"Current price growth sped up in June-July. Price dynamics in recent months were considerably affected by volatile components, including motor fuel, fruit and vegetables," it said.
In recent months, Ukraine has rained down swarms of drones on Russia's oil refining infrastructure and logistics, sparking a full-blown petrol crisis in one of the world's biggest oil producers.
