Apr 30, 7:06 AM EDT

Russia cuts key interest rate to 12.5 pct to help economy


Latest News
Russia's new Armata tank makes debut in parade rehearsal

Pro-Putin bikers lay wreath in Vienna en route to Berlin

Lithuania protests Russia's Baltic Sea naval activities

Polish biker says a Night Wolves member made it into country

Stalin billboards go up in Crimea ahead of Victory Day

Buy AP Photo Reprints
Multimedia
A district summary of the Beige Book
Measuring economic stress by county nationwide
Mall malaise: shoppers browse, but don't buy
Unemployment by the numbers
Family struggles with father's unemployment
Saying an affordable goodbye
Hard times hit small car dealer
Latest Economic News
EU raises eurozone forecast despite bleaker Greek outlook

Growth in US services firms picked up speed last month

Australia cuts interest rate to record low 2 percent

US factory activity improves in April, but hiring declines

Japan inflation edges up as BOJ keeps policy unchanged

Puerto Rico in economic limbo as legislators reject tax plan

Russia cuts key interest rate to 12.5 pct to help economy

German unemployment drops to 6.5 percent in April

Spain's economy grows at fastest rate since before crisis

Nepal economy shattered by quake, recovery to take years

Interactives
Greece's Debt Threatens to Spread
State budget
gaps map
Auto industry problems trickle down, punish Tennessee county
Women give old Derby hats a makeover in tough economy
S.C. town deals with highest unemployment in South
How mortgages were bundled and sold as securities
Tracking the $700 billion financial bailout
Tracking the year's job losses
State-by-state foreclosures since 2007
Credit crisis explained
Presidents and their economic legacies
Lexicon of the financial crisis
Americans' addiction to debt
Multimedia
Russia Celebrates Summer Solstice

MOSCOW (AP) -- The Russian Central Bank has cut its key interest rate by 1.5 percentage points to 12.5 percent to stimulate the economy as it heads into recession.

The bank said a reduced threat of runaway inflation, which slowed slightly to 16.5 percent in April, had made the cut possible, but said there remained a risk of "a significant cooling of the economy."

Thursday's rate cut is the third since December, when the Central Bank raised rates to 17 percent overnight to defend the then-plummeting value of the ruble.

The bank did not update its prediction that the economy will shrink by between 3.5 percent and 4 percent this year, although it did say that indicators point to "a significant decline in GDP in the first quarter" of the year.

© 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy and Terms of Use.