By Tuba Sahin
ANKARA (AA) - Russia's central bank on Friday unexpectedly cut its key interest rate by 50 basis points to 7.5% from 8%, in line with market forecast.
It was the sixth consecutive rate cut as inflation continues to ease.
In August, Russia's annual consumer inflation rate fell to a six-month low of 14.3%, according to the latest data by the Federal State Statistics Service (Rosstat).
At its last meeting in July, the Bank of Russia cut the rate by 150 basis points to 8% from 9.5%, much above than market estimate, meaning that the key rate has been lowered by 1,250 basis points, or 12.5 percentage points, since February.
In February, the bank hiked the key interest rate from 9.5% to 20% in a dramatic move amid sanctions due to Russia's war on Ukraine.
The Russian ruble has weakened 26% against the US dollar since the start of the war on Feb. 24.
According to the central bank's forecast, annual inflation will go down to 11.0-13.0% in 2022, to 5-7% in 2023, and return to 4% in 2024.