Bank of Russia reduces rates

Central Bank of Russia this month could reduce its key rate for the sixth time since April. The cycle of easing monetary policy began after a substantial reduction in economic activity. According to analysts Bloomberg, Bank of Russia may lower the refinancing rate by 0.25% to 10.5% this month. By the end of the year is projected to be reduced to 10.0%. Bank do not publish a schedule of its meetings, began lowering rates at a meeting April 24 - the first time since 2007. In the last quarter of Russia's economy has declined by 10.9% against a background of falling demand for exports and the cooling of world trade. But low rates have not helped to revive activity in the credit markets, despite the insistence of Prime Minister Putin used the funds to banks in the assistance for lending and stimulate domestic demand. Analysts at Goldman Sachs believe that the Central Bank of Russia will continue to reduce the rate in the foreseeable future. "The ruble is firmly established in the range of 26-41 against a basket of currencies, so it can be expected to decline further to 0.75% in the coming months."