Live Updates | Ruble on mend, Russia bank cuts interest rate

LONDON — Russia’s central bank says it’s lowering a key interest rate, and said more cuts could be on the way.

The decision indicates the bank thinks strict capital controls and other severe measures are stabilizing Russia’s currency and financial system despite intense pressure from Western sanctions over the war in Ukraine.

The bank said Friday it lowered its benchmark rate 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.

The rate increase shows how the central bank has managed to stabilize key aspects of the economy with severe controls, artificially propping up the ruble to allow it to rebound to levels seen before the invasion of Ukraine — even as the West piles on more sanctions.

___

KEY DEVELOPMENTS IN THE RUSSIA-UKRAINE WAR:

— Officials say Russian missile kills 30 civilians at train station

— EU imposes sanctions on Putin's daughters

— Key Polish leader bashes Hungary's Orban, longtime ally, over stance on Ukraine

— Congress votes to suspend Russia trade status, enact oil ban

— U.N. General Assembly votes to suspend Russia from UN rights council

— UN aid chief: ‘I’m not optimistic’ about Ukraine cease-fire

— Russia is moving troops and focus toward the east, but that strategy carries risks as well

— Go to https://apnews.com/hub/russia-ukraine for more coverage

___

OTHER DEVELOPMENTS:

COPENHAGEN, Denmark — A shipment of valuable art destined for Russian museums that was seized...