The Central Bank of Russia cut key interest rates on Thursday as officials push to make up for the blow of Western sanctions and inflation that is hammering the country's economy.
The central bank of Russia reduced interest rates.
After an extraordinary meeting on Thursday, the Central Bank of Russia cut its key interest rate from 14 to 11.
The bank said it was influenced by slowing inflation and the strong performance of the ruble.
The bank has slashed the key interest rate three times since it jumped from 9.5% to 20% following Russia's invasion of Ukraine.
The bank's announcement comes a day after Putin promised to increase pensions and the minimum wage from June.
Putin claimed that Russia's economic troubles were not a result of its war in Ukraine and Western sanctions, pointing to similar levels of inflation in Europe and the U.S.
A direct comparison with Western countries ignores the role the war and sanctions have played in other countries.
The key rate drops further. The key rate could be reduced further. The decision would be made at the bank's upcoming meetings. The next meeting of the board of directors is on June 10 and an announcement is expected at 13:30 Moscow time, the bank said.
The ruble staged a dramatic recovery and is one of the best performing currencies of the year. The ruble's strong performance is not a sign of waning sanctions or a revival of the Russian economy, according to experts. Capital controls in Moscow are believed to have propped up the currency. The misleading efforts by Putin and other officials to celebrate the currency's performance as an indicator of a strong Russian economy is in line with the Kremlin's broader propaganda push.
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