Russia’s central bank cuts interest rates to pre-war level

The central bank predicted inflation would average 14% to 17% this year, decline to 5% to 7% next year and return to 4% in 2024 (Alexander Zemlianichenko/AP)

Russia’s central bank cut interest rates back to their pre-war levels on Friday, saying inflation and economic activity were 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 February 24 invasion of Ukraine and the resulting sanctions by the US, European Union and other nations that restrict dealings with Russian banks, individuals and companies.