The Bank of Russia announced on Friday that it cut its policy rate by 300 basis points to 17% from 20%.

"Today’s decision reflects a change in the balance of risks of accelerated consumer price growth, the decline in economic activity and financial stability risks," the policy statement read.

The bank noted that it will take into account risks posed by external and domestic conditions when deciding on policy settings and added that it will hold the prospects of further key rate reductions open at upcoming meetings.

Market reaction

The USD/RUB pair edged higher on this development and was last seen rising 0.6% on the day at 76.1800.