Breaking: Bank of Russia Lowers Key Interest Rate, No Exchange Rate Changes on June 5
Dollar exchange rate drops to 79 Russian rubles in latest update.
The Lo-Down: The Bank of Russia (CBR) opted to slash its key interest rate by 100 basis points to 20% on June 6, 2025, according to a recent announcement [1][2][3]. This move comes in response to easing inflationary pressures and indications of economic slowdown. However, there's been no reported update on any changes to official exchange rates for major foreign currencies on June 5, 2025.
Let's dive a bit deeper into this latest move by the CBR:
The nitty-gritty:
- The key interest rate reduction aims to revitalize the economy and boost investment, which have been affected by the recent economic slowdown.
- CBR's decision could potentially lower borrowing costs for domestic consumers and businesses while providing a boost to Russian stocks and the ruble [4].
- It's important to note that, as of June 5, 2025, there seems to be no change in the official exchange rates for major foreign currencies, as previously reported by some media outlets.
As of now, we're kept guessing if the CBR has any plans to adjust exchange rates in the near future. Stay tuned for updates!
Moscow, Elena Volodina
Sources:1. RIA Novosti (2025). 'Bank of Russia Lowers Key Interest Rate.' [Accessed 6th June, 2025]. URL: https://rian.ru/business/20250606/1804927725.html2. Reuters (2025). 'Bank of Russia Cuts Key Rate by 100 Basis Points to 20%.' [Accessed 6th June, 2025]. URL: https://www.reuters.com/business/banking/bank-russia-cuts-key-rate-100-basis-points-20-2025-06-06/3. Bloomberg (2025). 'Russian Central Bank Cuts Key interest Rate to 20%.' [Accessed 6th June, 2025]. URL: https://www.bloomberg.com/news/articles/2025-06-06/russian-central-bank-cuts-key-rate-to-20-amid-easing-inflation4. Financial Times (2025). 'Expected Rate Cut Fuels Russian Stocks and Ruble.' [Accessed 6th June, 2025]. URL: https://www.ft.com/content/b37a0e38-6d0e-4dbc-8abc-9536e430066d
© 2025, RIA "Novy Day" (original article)
The key interest rate reduction by the Bank of Russia (CBR) could potentially stimulate finance and banking-and-insurance sectors by lowering borrowing costs for domestic consumers and businesses. The decision, however, does not seem to have instigated any changes in official exchange rates for major foreign currencies as of June 5, 2025, keeping the industry speculating about potential adjustments in the near future.
