Russia cuts 50 basis points against recession

Securities Times reporter Wu Jiaming yesterday, the Russian central bank announced the benchmark interest rate from 12% to 11.5%, for the third time in six weeks, the rate cut is in line with market expectations. Russia has loosened its monetary policy since April this year, encouraging domestic commercial banks to lend more and injecting money into the real economy to help the country out of its first recession in 10 years.　　Ulukayev, deputy governor of the Russian Central Bank, said the inflation rate was likely to fall below the government's target of 13% per cent for the first time this year, with inflation at twice times last May, and lower price pressures giving the Russian central bank room to cut interest rates again. Russian Economic Development Minister Nabiulina said that as consumer demand and investment both fell, the Russian economy will not begin to recover until the end of this year or early next year. She also confirmed that the Russian Ministry of Economic Development expects the Russian economy to shrink 6% to 8% this year, one of the most pessimistic forecasts of the Russian economy since the financial crisis.　　Russia's economy fell 9.5% in the first quarter of this year. The International Monetary Fund also said this week that the IMF would downgrade its economic growth forecasts for Russia from a negative 6% to a negative 6.5%.　　The IMF says Russia desperately needs to deal with bad bank loans, the Russian central bank still lacks a comprehensive understanding of the Russian banking system, the central bank needs to carry out stress tests on small and medium-sized banks, and must readjust the capital of banks. Citi 3rd the Russian stock market rating from "overweight" to "reduce". According to Citigroup analysts, Russia's stock market has rebounded much more recently than other emerging market equities from its lows, and Russian equities are not cheap, and Russia's economy is still very depressed.