Russian central bank cuts interest rate by 2 points

Moscow

RUSSIA'S central bank unexpectedly cut its main interest rate on Friday as fears of recession mount in the country following the fall in global oil prices and Western sanctions over the Ukraine crisis.

The central bank reduced its one-week minimum auction repo rate by two points to 15 per cent, a little over a month after pushing it up by 6.5 points to 17 per cent after a run on the rouble.

The bank had been widely expected not to change the rate. Following the decision, the rouble extended losses to trade as much as 4 per cent on the day against the dollar, though it later clawed back some of the losses.

The move implies a shift in the bank's priorities away from clamping down on rising inflation and supporting the rouble, towards trying to sup…