Russia cuts rates for first time since June 2010

MOSCOW — Russia has cut a key interest rate by 0.25 percent as it tries to shore up its economy from the debt crisis that’s afflicting the neighboring eurozone.

The Central Bank of Russia said in a statement Friday that it is lowering its refinancing rate from 8.25 to 8 percent.

Moscow has not cut the rate since June last year, which highlights Moscow’s concern over debt crisis in the 17-nation eurozone.

Russia’s economy is expected to grow 4.5 percent this year, and the country is running a budget surplus. But economists say that growing social spending is likely to prompt Russia to run deficits in the next few years and hurt the economy.