Russia’s Central Bank sees mid-term risk from oil prices

17 Jun 2017   Russia

Russia’s Central Bank cuts its key lending rate, saying there are mid-term risks present from lower-than expected crude oil prices. File photo by DyMax/Shutterstock June 16 (UPI) — Crude oil prices are lower than expected following a decision to extend an OPEC-led production deal, presenting a risk to growth, Russia’s Central Bank said. Contrasting a decision from the U.S. Federal Reserve this week to raise its rates, Russia’s Central Bank said Friday it was cutting its key rate to 9 percent annually. “Mid-term risks remain elevated,” the bank’s press secretary said in a statement . “First, they are connected with the further dynamics of oil prices, which [under the agreements reached] began to take shape at a lower level than expected.” Russia is party to an agreement led by the Organization of Petroleum Exporting Countries to offset supply-side strains by trimming production. Russia is the largest contributor among non-OPEC […]

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