Russia’s central bank cut its key rate to 11% per annum from 14% during an extraordinary meeting of its Board of Directors, the regulator said.

“The latest weekly data indicate a significant slowdown in the current rate of price growth. The weakening of inflationary pressure is supported by the dynamics of the ruble exchange rate along with a marked decline in inflationary expectations of households and businesses. Annual inflation reached 17.8% in April, but, as of May 20, slowed to 17.5%, declining faster than the April forecast of the Bank of Russia”, – follows from the Central Bank statement.

This is the third consecutive reduction in the key rate over the past month and a half after its record – and also unscheduled – increase to 20% in February. At that time, the Central Bank sharply tightened monetary policy in response to the collapse of markets, sanctions against major banks and the freezing of the regulator’s foreign exchange reserves, which followed the start of Russia’s special operation in Ukraine.