Russia’s central bank cut its key interest by a full percentage point on Friday to 20 per cent, its first cut since 2022, as Vladimir Putin’s war economy cools.

The Bank of Russia lowered its key interest rate for the first time since late 2022, even with inflation remaining well above its target.

Inflation in Russia hit 8.3% in the first quarter of the year, with the effects of the war in Ukraine continuing to be felt in the economy.