Russia's central bank has surprised analysts by cutting rates by 50 basis points, taking the key interest rate to 9.25 percent from 9.75 percent.
The cut came as no surprise but the market had expected a cut smaller than the 50 basis points the central bank delivered.
Last week the bank's governor Elvira Nabiullina suggested the cut would be 25 or 50 basis points.
It is the second time the Bank of Russia has cut rates this year and the lender hinted that there could be more cuts in the pipeline.
The central bank said it remained committed to its plan to making further cuts in the second and third quarters of this year.
The bank also forecast the already slowing inflation rate, currently at 4.3 percent, to continue its slide.
"Given the decision taken and moderately tight monetary policy sustained, the Bank of Russia forecasts that annual consumer price growth will reduce to 4 percent before the end of 2017 and will remain within this target level in 2018-2019," the bank said in a statement.
In the immediate aftermath of the cut the rouble lost value against the dollar, before staging a turnaround and gaining 0.4 percent against the dollar.