By Scott Kanowsky 

Investing.com — The Russian central bank has slashed its key interest rate for the second time in just over two weeks, lowering it by 150 basis points to 9.5% from 11%.

This is also the fourth reduction since CBR announced a 20% emergency rate increase following Russia’s invasion and start of Western sanctions.

CBR claimed Friday’s decision was driven by a slower than expected slowing of price growth. As of June 3, 17% is “appreciably lower” than its April forecast at 17.8%.

CBR reported that there was a smaller decline in growth than expected in April, however it warned that Russia’s economy faces possible headwinds.

“The environment outside […]It remains difficult and severely restricts economic activity. CBR released a statement saying that the contraction in imports caused by financial and external restrictions was significantly greater than the decrease in exports.

Following the announcement, the currency fell against the dollar. Currency was down 3.6% to $57.2037 by 07:16 GMT (1116 GMT)