The Bank of Russia lowered its key interest rate for the first time since late 2022, even with inflation remaining well above its target.

The Russian central bank cut its key interest rate by a full percentage point to 20% on Friday, a surprise move by the bank which it justified by pointing to declining inflation pressure and a more robust rouble.

It was the eighth rate cut in the past year, extending the bank’s divergence from the Federal Reserve, which has held rates steady since the end of last year.