Russia's central bank cuts key interest rate to 17%

By Tuba Sahin

ANKARA (AA) – The Russian central bank on Friday sharply cut its key interest rate by 300 basis points to 17%, signaling further easing.

"Today's decision reflects a change in the balance of risks of accelerated consumer price growth, decline in economic activity and financial stability risks," the Bank of Russia said in a statement.

It stressed that the bank will take into account external and domestic risks, financial market reactions and the course of inflation for its further decisions.

The central bank also said future cuts is possible.

"The Bank of Russia .... holds open the prospect of further key rate reduction at its upcoming meetings," it said.

The country's annual consumer inflation rose to 16.70% for the first week of April, hitting its highest level in the last seven years.

In March, the bank kept the rate constant at 20% after February's dramatic hike from 9.5% amid sanctions due to its war on Ukraine.

The Bank of Russia Board of Directors will hold its next rate review meeting on April 29. The press release on the Bank of Russia Board decision and the medium-term forecast are to be published at 1.30 p.m. Moscow time (1030GMT).