The Russian central bank cut its key interest rate by 200 basis points to 18% on Friday, hoping to revive lending and boost flagging economic growth after stubbornly high inflation showed signs of easing.

Russia's central bank today lowered interest rates to 18% from 20% earlier, its steepest cut in more than three years as policymakers race to avert a recession.

The central bank said it would lower its benchmark rate to 43% from 46%, restarting an easing cycle that had been disrupted by a political furor.