Russian Central Bank cut its main interest rate to 10.50%

The Russian central bank announced Monday the cut by a quarter percentage point from its main refinancing rate that will remain at 10.50%, using the stabilization of inflation and with the aim of supporting an economy in recession.

"This move is made possible by macroeconomic trends, which have allowed the Bank of Russia to maintain the pace of interest rate cut," the institution said in a statement.

The cut will take effect on Tuesday, said the central bank.

This is the sixth rate reduction making the central bank since April, in an attempt to facilitate the flow of credit in the Russian economy.

Inflation fell sharply in Russia in recent months, and in August held steady at 8.1%.