MOSCOW, October 29 (RIA Novosti) - Russia's Central Bank said on Thursday it would cut its key lending rate by 0.5 percentage points to 9.5% per annum from October 30, following a slowdown in consumer price growth.
The rate will be the lowest since Russia started its transition to a market economy in the early 1990s. The previous rate of 10% per annum was set from September 30, 2009.
Analysts say the move is intended to bring down interest rates on loans granted to the real sector to help domestic business amid the ongoing economic crisis.
The Bank of Russia has cut the refinancing rate for the eighth time this year from the level of 13% at the start of 2009.
Central Bank First Deputy Chairman Alexei Ulyukayev said last week that Russia's 2009 inflation could be below 10.3% compared with the projected figure of 11%.
