The Bank of Russia today cut its key interest rate by 100 basis points to 11.5%, citing "persistent risks" of an economic slowdown and its expectation that inflation will drop to its 4% target in 2017 - but analysts warned the central bank's recent return to currency markets risks contradicting its inflation-targeting framework.

The cut to the one-week repo rate continues the bank's downward trajectory since a shock hike in December last year, which took its key rate from 10.5% to 17% in one day