Economists: Russia's economic plight worsens, the Central Bank may intensify interest rate cuts.

Jin10 data reported on July 25, with inflation easing and growing concerns among the government and business sectors about an economic recession, the Central Bank of Russia has room for further cuts to key interest rates. A survey of economists by institutions indicates that Russian central bank policymakers are expected to lower the benchmark rate for the second consecutive time at Friday's meeting. Among them, 60% of respondents expect a 200 basis point cut to 18%, while one analyst forecasts a larger cut, and three others predict a reduction between 100-150 basis points. Against the backdrop of the ongoing Russia-Ukraine conflict, this interest rate decision will set the tone for policies in the second half of the year. Central bank officials are struggling to balance the contradiction between inflation risks and the worsening economic downturn. Olga Belenkaya, an economist at Moscow's Finam Investment Company, pointed out, "The Central Bank of Russia must respond to the significant easing of inflation. Otherwise, rising real interest rates may lead to excessive cooling of the economy and increase financial pressure on businesses."