Board of Directors at Russia’s Central Bank decided to cut the key rate to 9 percent per annum, the bank said, TASS reported.

The Board noted that inflation is close to the target, inflation expectations keep declining and economic activity is recovering.

“Inflation risks were down in the short term, while they remain in place in the medium term. The Bank of Russia will continue to conduct moderately tight monetary policy to maintain inflation close to the 4 percent target,” said the bank.

The bank added it sees room for cutting the key rate in the second half of 2017.

“While making its decision hereinafter, the Bank of Russia will assess inflation risks, the inflation dynamics and economic developments against the forecast,” reads the message.