MOSCOW: Russia's Central Bank on Friday lowered its key rate by a quarter of a percentage point to 7.25 percent, and signalled further cuts as inflation slows and growth flatlines.
"Inflation slowdown is continuing," the regulator said in a statement. "Weak economic activity, along with temporary factors, limits inflation risks over the short-term horizon."
It said there is a "possibility of further key rate reduction" at its next meeting if inflation returns to the forecast 4 percent in early 2020.
The annual inflation rate decreased to 4.6 percent in July due to "consumer demand trends" and a strengthened ruble, it said.
Russian economic growth slowed dramatically in the first quarter of 2019 to an annual rate 0.5 percent, falling below the Central Bank's forecast.
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