With the ruble returning to its pre-war level, however, policymakers now focus their efforts on recalibrating economic activity to absorb any negative effects of international sanctions.

“The Russian economy faces a challenging external environment that significantly restricts economic activity. The central bank released a statement on Friday stating that the conditions had allowed the reduction of the key rate, despite the fact that financial stability and price risks are no longer high.

Recent weekly data show a decrease in the rate of current price growth due to a weakening ruble and cooling consumer activity.”

According to the bank, its inflation outlook would be affected by how its exports and imports will develop as it attempts to navigate the severe sanctions.

The statement added, “It will take into account the necessity for a structural transform of the economy and ensure that inflation returns to target by 2024.”