The Russian Central reduces the interest rate to 11%

The Russian Central Bank cut the interest rate to 11% from 14% Thursday, May 26, with inflation falling from its highest levels in 20 years and the Russian economy approaching deflation.

The Russian Central Bank said it saw room for further reduction this year, noting that risks to financial stability had eased after annual inflation hit 17.5 percent on May 20, down from 17.8 percent in April.

The cumulative rate of reduction since February was 900 basis points.