Russia to cut half a percent from interest rates

Russia's Central Bank announced in a statement Thursday that it would lower the refinancing rate to 9.5 percent from 10 percent on Oct. 30.

Most other key rates will also be lowered half a percent, said the statement.

The central bank also believed that the inflation in Russia will stay below the previous official forecast in the upcoming months.

Prime Minister Vladimir Putin said on Sunday that inflation in Russia may be slightly over 8 percent this year.

He also said the goal of cutting inflation rate down to 5-6 percent in the next three or four years is attainable.

The Russian economy had developed at high speed and high inflation before it was hit hard by the global financial crisis. Official statistics showed that its inflation rate in 2007 stood at 11.9 percent, while in 2008 at 13.3 percent.

Source: Xinhua