Russia's central bank cuts key interest rate to 11%, citing decreased stability risks

MOSCOW, Russia: The Russian central bank has cut its key interest rate by 300 basis points for a third time since its emergency hike in late February, citing cooling inflation and a recovery in the ruble.

The Central Bank of Russia on Thursday cut its key interest rate from 14% to 11%, citing a slowing in inflation and the recovery of the ruble.

Following an extraordinary meeting, policymakers opted for another 300 basis point cut, the Bank's third since an emergency hike of the key rate from 9.5% to 20% in the immediate aftermath of Russia's invasion of Ukraine, and the imposition of punitive sanctions by Western powers. At the time, the CBR also imposed strict capital control measures in a bid to mitigate the impact of sanctions and prop up the ruble.

"The latest weekly data point to a significant slowdown in the current price growth rates. Inflationary pressure eases on the back of the ruble exchange rate dynamics as well as the noticeable decline in inflation expectations of households and businesses," the CBR said in...