Russia鈥檚 central bank on Friday lowered interest rates to 18 per cent from 20 per cent earlier, its steepest cut since 2022 as the economy slows down faster than expected.
Russia鈥檚 economy has been marked by volatility since it sent troops into Ukraine in February 2022.
The central bank jacked interest rates to an eye-watering high of 21 per cent last October to combat inflation and kept them at that level until last month, when it eased them to 20 per cent.
But sky-high lending rates have hit businesses hard, with some of the country鈥檚 top corporate leaders putting pressure on the central bank to relax rates.
鈥楥urrent inflationary pressures, including underlying ones, are聽declining faster than previously forecast. Domestic demand growth is聽slowing,鈥� the bank said in a press release.
The regulator also predicted borrowing costs would stay elevated in the 18-19 per cent range this year as it saw a return to its inflation target of four per cent only in 2026.