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Russian Central Bank Makes Surprise Interest Rate Cut

Published 01/30/2015, 06:04 AM
Updated 01/30/2015, 06:31 AM
© Reuters. People walk past a shop with a sale advertisement in St. Petersburg, Russia on Nov. 7, 2014.

By Reuters -

© Reuters. People walk past a shop with a sale advertisement in St. Petersburg, Russia on Nov. 7, 2014.

(Reuters) - Russia's central bank cut its key interest rate by two points to 15 percent on Friday, as the economy slides towards recession because of a collapse in global oil prices and Western sanctions over the Ukraine crisis.

The central bank said in a statement it was reducing its one-week minimum auction repo rate, which had been 17 percent, seeing conditions for a reduction in inflation in the medium-term.

The bank hiked its key rate by a total of 11.5 percentage points last year in response to panic on the currency market and soaring inflation, which reached 11.4 percent in December.

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