(Reuters) – The Russian central banking is likely to reduce its key interest rate 100 basis points to 10% Friday. This move is in response to slow consumer demand and a paused inflation. A Reuters poll on Monday suggested that this was the case.

Slowly, the bank reversed an emergency rate increase to 20% in February. This was due to Russia’s February 24th move to send thousands of troops to Ukraine. The imposition of Western sanctions as a response.

After that, the central banks have lowered their key rates three times. The reductions were each 300 basis points. In May, they held an off-schedule session and stated that it is open to the possibility of a rate decrease at future meetings.

Reuters polled 26 economists and analysts to predict that Russia would cut its key rate by 100 base points Friday.

Analysts at MKB Investments stated that “the central bank will be more active, trying to stimulate economy to the maximum extent possible.”

Russia’s bond market already has priced in the rate reduction. On Monday, yields for 10-year OFZ Treasury Bonds fell to 9.9%, and moved in an opposite way from their prices. They were at around 9.5% after the May 26th rate cut.

While the economy is heading for recession, inflation, which is the main responsibility of the central bank, allows for rates to be cut.

The latest data shows that Russia’s annual inflation fell to 17.35% from 17.51% last week. This is still well above the central bank’s target of 4%, however, prices were stable over the week after a slight decline the previous week.

There were three economists who predicted that the outcome would be different from a 100-basis-point reduction. Two predicted no rate changes, one expected a 10.50% cut and one projected a 75-basis points cut.

Natalia Orlova (chief economist, Alfa Bank), said that “the central bank has lowered rate enough” and could pause. She was one of the few who predicted no rate changes. Her concern was that rate reductions could cause households and businesses to wait longer for lower rates than they are now, which would be counterproductive.

Five economists polled expected rates to return to single figures, with three expecting a cut of 9.5% and two anticipating a cut of 9%.