Central bank cuts key rate by 300 basis points to 17%

MOSCOW, Apr 8 (PRIME) -- The central bank has reduced the key rate by 300 basis points to 17% annually, the authority said in a statement on Friday.

"The external conditions for the Russian economy remain difficult and severely restrict economic activities. The risks to financial stability remained but stopped to grow as of this date, including due to the earlier measures of capital flow control," the central bank said.

Annual inflation continues to grow due to the low base effect, but the rise began to decelerate the last week, including due to the ruble dynamics. There is a stable inflow of money on the deposits.

The central bank expects that the earlier toughening of monetary policies would continue to limit pro-inflation risks.

The next meeting of the central bank to consider the key rate is scheduled for April 29.

End %%mk/jst%%