Russia Cuts Key Rate to 14.5% Amid Easing Inflation

MOSCOW — Russia's Central Bank lowered its key interest rate by 50 basis points to 14.5 percent on Friday, continuing a series of monetary easing measures to support price stability amid a slowing economy and persistent geopolitical uncertainties.

The decision, announced in Moscow, aligned with expectations from most economists and came as inflation eased to 5.77 percent in April, down from 5.9 percent in March, according to Economy Ministry data. The bank targets 4 percent inflation and projects it will reach between 4.5 and 5.5 percent by year-end. Core inflation indicators have shown slight moderation, providing room for the cut despite ongoing challenges.

Central Bank Governor Elvira Nabiullina, in a briefing following the announcement, emphasized caution due to external risks, including the conflict in Ukraine and escalating tensions in the Middle East involving Iran and a potential blockade of the Strait of Hormuz. These developments have driven up prices for Russia's export commodities, though the country has reduced oil output following Ukrainian drone attacks on ports and refineries. "If the conflict drags on, the adverse effects for the Russian economy will be...