Russia’s central bank cuts interest rates to prewar level

By The Associated Press

Russia’s central bank has cut interest rates back to their prewar levels. The bank said Friday that inflation and economic activity are developing better than expected despite sweeping Western sanctions imposed in response to the war in Ukraine. The bank lowered its key rate by 1.5 percentage points, to 9.5%. The rate had been as high as 20% in the wake of the Feb. 24 invasion of Ukraine and the resulting sanctions that restrict dealings with Russian banks, individuals and companies. Economists say that over time the sanctions will corrode growth and productivity, but the central bank has managed to stabilize Russia’s currency and financial system through drastic measures.