(Reuters) – The Russian central banking will reduce the key interest rate to 17% during upcoming board meetings. Governor Elvira Nabullina stated on Thursday. This is in response to western sanctions against Ukraine.

Nabiullina stated that Russia will be making adjustments to its forex controls in order to prevent situations when the rouble market deviates from official levels.

According to her, the central bank’s February emergency rate rise of 20% to 20% helped stabilise inflation and stabilize the currency. Nabiullina, ahead of Nabiullina’s April 29 board meeting, stated that after lowering the rate to 17%, the bank was ready for more monetary ease.

Nabiullina stated that they will look into the possibility for further reductions at upcoming meetings. She spoke at the Duma’s lower chamber of parliament.

Russia’s strongest economic growth in 13-years in 2021 was a warning from her. Russia is now facing structural change as it has limited access to international financial systems and trade sanctions.

Nabiullina explained that even though there are high levels of localization, problems may still arise if there have been high import substitutions.

She said that Russia uses bleaching agents from abroad, but produces its paper in Russia. Or, Russia urgently requires foreign-made packaging materials to protect food products made in Russia.

“It all takes some time,” she stated.

Russia’s financial crisis is causing capital flight, inflation, and debt default. This has been exacerbated by sanctions placed on West banks, individuals and companies.

Nabiullina said that Russia is looking to expand the acceptability of Russia’s Russian MIR banks cards. These are an alternative to VISA/Mastercard, both of which were merged with other Western businesses and have been suspended from Russia.

Mir and China’s UnionPay are the only options for Russians who wish to send money abroad after Russian banks were cut off from the international financial system as a result of what Moscow called its “special military intervention” in Ukraine.