MOSCOW, July 25. /TASS/. The MOEX index dropped below the 2,800 mark for the first time since July 18, 2025, following the Bank of Russia’s decision to cut the key rate to 18% per annum.

As of 1:30 p.m. Moscow time, the MOEX index was down 0.3% at 2,799.36. By 1:46 p.m., it had pared losses to 2,805.53 (-0.08%), while the RTS index was down 0.08% at 1,120.69.

At the market open, the MOEX index had gained 0.31% to 2,816.29, with the RTS index also up 0.31% at 1,124.99.

The Bank of Russia lowered the key rate from 20% to 18%, marking its second consecutive rate cut, this time by 200 basis points. The decision was attributed to a faster-than-expected decline in inflationary pressure and a slowdown in domestic demand.

The regulator had kept the key rate at 21% during meetings on December 20, 2024, and February 14, March 21, and April 25, 2025. At the time, it cited higher lending rates for borrowers and cooling credit activity as reasons for maintaining tight monetary policy to return inflation to the 4% target. On June 6, the rate was cut to 20%, with the Bank of Russia citing easing inflation and a gradual return to balanced economic growth.