The Central Bank of Russia announced that it has reduced its key interest rate by 300 basis points to 14 per cent.
"With price and financial stability risks no longer on the rise, conditions have allowed for the key rate reduction," Xinhua news agency quoted the bank as saying on Friday.
Recent data has demonstrated a slowdown in price growth rates against the backdrop of the strengthening of the ruble, and a cooling of consumer activity, it said.
Further inflation movements will be shaped by such impactful factors as the efficiency of import substitution processes and the scale and speed at which imports of finished goods, raw materials and components will be recovering, according to the central bank.
The bank's monetary policy aims to take into account the need for a structural transformation of the economy and will ensure a return of inflation to target in 2024.