President of the Bank of Russia, Elvira Nabiullina (pictured), stated on Friday that "the current low rates of price growth in Russia cannot yet be called a steady slowdown in inflation."
Nabiullina continued by saying that the "pro-inflationary risks are still strong" and that the current low prices can be explained "by price correction after a sharp increase in March."
Earlier, the Bank of Russia announced that it will be cutting its key interest rate by 150 basis points to 9.5%, despite "significantly limiting" economic activity. The bank's official report warned that Russia's annual inflation will be between 14% and 17% this year.
