Russia slashed its interest rate by one percentage points to 14 per cent today saying "the balance of risks is still shifted towards a more significant cooling of the economy".
The bank said the rate could would help reduce these risks, without the threat of increasing inflationary pressure. This is because monetary policy, and low economic growth, will cause inflation to slow to nine per cent over the next year.
"As inflation risks abate, the Bank of Russia will be ready to continue cutting the key rate," the bank said today.
Russia's economy has struggled amid international sanctions, as well as a rapidly depreciating Russian rouble.
"The high level of annual inflation is caused primarily by the supply-side factors, ie. the rouble depreciation and external trade restrictions," it said. "Their impact is short-term and will be exhausted before the end of 2015."
"Structural factors continue to exert a restraining influence on economic growth, however. Its slowing is becoming more and more cyclical. Weak economic activity will be conducive to inflation reduction."