The Bank of Russia lowered its key interest rate for the first time since late 2022, even with inflation remaining well above its target.

The Russian central bank cut its key interest rate by a full percentage point to 20% on Friday, a surprise move by the bank which it justified by pointing to declining inflation pressure and a more robust rouble.

Russia’s central bank cut its key interest by a full percentage point on Friday to 20 per cent, its first cut since 2022, as Vladimir Putin’s war economy cools.