"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.