Russia surprises analysts by cutting key interest rate

The Bank of Russia has cut its key interest rate from 17% to 14%, saying the risks facing price and financial stability are no longer rising.

But the bank has admitted foreign sanctions are challenging and predicted imports could fall this year by more than a third, with exports likely to fall by about a fifth.

The bank's governor Elvira Nabiullina says Russia has the resources to avoid any financial default.

Interest rates were hiked to 20% shortly after the invasion of Ukraine.

Western nations have put in place unprecedented financial penalties on Russia over its invasion of Ukraine.