23:38 GMT +321 January 2020
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    Russian Economic Development Ministry stated that Central Bank's decision to lower its key rate from 17 percent to 15 percent is justified and appropriate.

    MOSCOW, January 31 (Sputnik) The Russian Central Bank's decision to lower its key rate from 17 percent to 15 percent is justified and appropriate, the head of the country's Economic Development Ministry said Saturday.

    "I consider yesterday's decision to change the key rate – lowering to 15 percent, as well as all instruments of refinancing the Bank of Russia, to be completely justified and appropriate," Alexei Ulyukaev told journalists.

    According to Ulyukaev, this move signifies realization that the financial stability risks have lowered. The decision to raise the key rates in December was related to this, the minister said.

    Ulyukaev stated that he believed that the Bank of Russia has managed to stabilize the currency and financial markets.

    On Friday, Russia's Central Bank unexpectedly lowered its key interest rate from 17 percent to 15 percent.

    Last December, the Central Bank of the Russian Federation made the largest single interest rate increase since 1998, raising the rate from 10.5 to 17 percent. The decision was made to limit risks of ruble depreciation and inflation.

    The Russian currency lost almost half of its value against the US dollar since summer 2014 due to an oil price slump.

    Related:

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    Central Bank Estimates Russia's Foreign Debt Down to $600 Billion for 2014
    Russia's Capital Outflow Reaches $151.5Bln in 2014, Central Bank Reports
    Tags:
    key rate, interest rate, Economic Development Ministry, Russian Central Bank, Alexei Ulyukayev, Russia
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