Moscow : Bank of Russia has decided to cut the key rate by 300 basis points to 17 per cent per annum from April 11.

“The external conditions for the Russian economy are still challenging, significantly disrupting economic activity. Financial stability risks still exist, but have stopped rising for some time, including due to the capital control measures adopted,” Xinhua news agency quoted the central bank as saying in a statement.

According to the statement, the bank keeps open the possibility of further reduction in rates in its upcoming meetings, and the next rate review meeting will be held on April 29.

Russia raised its critical rate from 9.5 percent to 20 percent on February 28 to support financial and price stability and protect civilian savings from depreciation, just four days after it launched its war in Ukraine.

The central bank in its rate review meeting on March 18 decided to keep the key rate at 20 per cent.