The Central Bank of Russia (CBR) announced on Thursday it will cut its key rates as of Friday, news agencies reported.

The annual refinancing rate will be cut 0.5 percentage points to 12.5 percent, from 13 percent, amid slowing inflation, the RIA Novosti news agency reported citing the regulator's press office.

The rate of direct, one-day repurchase agreement operations will also be cut 0.5 percentage points to 9.5 percent, the Interfax news agency reported.

CBR Chairman Sergei Ignatyev said on April 3 that a gradual inflation slowdown will allow the CBR to reduce the refinancing rate.