Russia cuts interest rate as ruble settles despite sanctions

LONDON (AP) — Russia’s central bank say it’s lowering a key interest rate and said more cuts could be on the way. The central bank decision Friday indicates it thinks strict capital controls and other severe measures are stabilizing Russia’s currency and financial system despite severe pressure from Western sanctions over the war in Ukraine. The bank said it lowered its benchmark from 20% to 17%, effective Monday. It had raised the rate from 9.5% on Feb. 28, four days after the invasion, as a way to support the ruble’s plunging exchange rate. A currency collapse would worsen already high inflation for Russian shoppers by ballooning the cost of imported goods.