Russian central bank cuts key interest rate by 2 percent

The Bank of Russia -- Russia's central bank -- on Friday made a decision to cut the interest rate down from 17 to 15 percent, said an online statement released by the financial regulator.

The bank stressed that its previous decision "has stabilized the inflationary and devaluation expectations to a satisfying extent."

The rate was once raised from 10.5 to 17 percent in mid-December last year against the backdrop of the ruble's panic depreciation.

According to the bank, the increasing inflationary pressure has been controlled in time, while the price roar will be put on a brake due to economic activity slowdown and the shrinking consumer demand.

Central bank chief Elvira Nabiullina said later in the day that the 2-percent interest rate cut would help curb inflation and restore economic growth, while making it possible to "launch crediting of the real sector" as listed in the government's anti-crisis plan.

The move was also applauded by Finance Minister Anton Siluanov, who said the "correct and balanced" decision could trigger the interest rate cuts in the banking sector.

Meanwhile, the bank's statement said that annual inflation in January 2015 has amounted to 13.1 percent. By January of 2016, the inflation in Russia would have fallen below 10 percent, the bank forecasts.

The bank also predicted the Russian gross domestic product would be minus 3.2 percent in the first quarter of 2015. Endi