Russia’s Central Bank has, again, cut its interest rates on news that the recession may be reaching its lowest point.

The refinancing rate has been cut further this week to 11.5%, from 12%. The Bank also cut the repurchasing rate for central Bank loans to 12.5% from 11%.

Russian officials are hoping that economic contraction will ease over the rest of the year, while oil prices are set to remain above $50 per barrel in the  “near future,” stabilising the economy, according to the president’s top economic advisor, Arkady Dvokovich.

President Dmitry Medvedev, seems to feel some optimism for the rest of the year, “I want to believe the change in the oil price already reflects certain fundamental trends that are taking shape in the world economy.”

However, the Central Bank has not ruled out moving its inflation forecast to below 12% and may introduce further rate cuts later in the year if necessary, according to the Bank’s deputy chairman, Alexei Ulyukayez.