Moscow, Russia: The Russian Central Bank has cut its key interest rate to 15 percent from 17 percent, says statement of Central Bank of Russia.
Central bank confirmed that growth rate of will remain under 0.5 percent and GDP will decrease by 3.2 percent in the first six months of 2015, compared to the same period last year.
Russian currency Ruble is sliding down every passing day and now it stands much better then a month ago as it is today 70 rubles to one US dollar but this this indicates that Ruble lost more than 16 percent of its value since the beginning of 2015 due to US and EU backed sanctions over Russia due to its alleged involvement in destabilizing eastern Ukraine.
The Ukraine crises caused heavy financial losses to both the neighboring countries as Ukrainian currency depreciated almost 50% while inflation hiked around 29% in last six months. While Russia is facing sanctions and oil prices are going down resulting in crunchy financial conditions faced by Russians in coming years.
Russian President Vladimir Putin believes that Russian will come out of this crises as a more stronger nation than ever while western economists forecast that Russian will face worst financial crises in forthcoming years.