Russia’s central bank slashes rate, saying inflation slows

MOSCOW (AP) — The Russian central bank has slashed its key interest rate just a month after dropping it to where it was before sending troops into Ukraine, saying inflation is still easing partly as consumer demand falls. The bank on Friday lowered its key rate by 1.5 percentage points, to 8%. It said inflation expectations have “significantly decreased,” while a decline in business activity was slower than expected in June. As sanctions and the exit of Western companies from Russia have led to global economic isolation, the central bank has managed to stabilize the currency and financial system by preventing money from leaving Russia and forcing exporters to exchange most of their foreign earnings into rubles.