MOSCOW, September 6. /TASS/. The Bank of Russia has reduced the key rate to 7% per annum for the first time since 2014 on the back of decelerating inflation, the regulator says on Friday.

"On September 6, 2019, the Bank of Russia Board of Directors decided to cut the key rate by 25 basis points to 7% per annum. Inflation is continuing to slow. At the same time, inflationary expectations remain elevated. The Russian economy’s growth rate is still coming in lower than the Bank of Russia’s expectations. Risks of a global economic slowdown have increased. Risks of inflation accelerating or slowing down by the year-end are balanced," the Central Bank says.

The next Board meeting on the key rate will be held on October 25, the Bank of Russia said.

The ruble has not actually responded to the decision of the regulator to slash the key rate by 25 basis points. The dollar dropped by 0.11% to 65.91 rubles after the key rate publication. The euro lost 0.07% and declined to 72.68 rubles.