INSUBCONTINENT EXCLUSIVE:
Russia's Central Bank said Friday it was cutting its key interest rate for a second straight time as risks of price rises and financial
instability were no longer rising.The Bank of Russia said it was slashing the rate from 17% to 14% from next week, a greater cut than
emergency measures due to Russia's military action in Ukraine.The bank had hiked the rate to 20% in late February, four days after
President Vladimir Putin sent in troops.This came after Western nations imposed sanctions that largely cut Russia's financial sector off
from the global economy.The Central Bank cut the interest rate to 17% earlier this month, however, saying that risks to financial stability
had "ceased to increase" for now.Analysts surveyed by Russian media had largely predicted a 15% cut for the latest rate decision."It now
looks likely that rates will fall towards 10% by year end," Liam Peach, an analyst at Renaissance Capital, said in a note after the
sanctions and could see a sharper decline than its base scenario predicts."We are in a zone of colossal uncertainty," both in terms of
and warned that payments of dollar-denominated debt in local currency would constitute a sovereign default, the country's first in
decades.Nabiullina insisted that the Finance Ministry has resources to make such payments and "from the economic point of view, there cannot
be any talk of default," while admitting that there were "difficulties with payments that we see.""I hope that will all also pass and end
from which it has since rebounded.The Central Bank predicted that inflation would peak at up to 23%, before slowing next year.The bank has
concerned about inflation, the bank said its monetary policy would also focus on the need for a "structural transformation of the economy"
given the changed circumstances.The next meeting to discuss a rate change will be June 10, as the bank said it sees room for further rate
reduction this year.Analysts surveyed by Russian media had largely predicted a 15% cut for the latest rate decision.The Central Bank
nevertheless struck a cautious note, saying the country's economy faces a "challenging" situation due to sanctions and could see a sharper
historic lows against the dollar and the euro in March, from which it has since rebounded.The Central Bank predicted that inflation would
sovereign default, the country's first in decades.Central Bank Governor Elvira Nabiullina was set to give a press conference later
Friday.The next meeting to discuss a rate change will be June 10, as the bank said it sees room for further rate reduction this year.
