LONDON, April 9 (Reuters) - Russian stocks rose on

Tuesday to their highest since before Russia invaded Ukraine in

February 2022, boosted by market expectations that borrowing

costs will be eased later this year, while the rouble dropped

slightly to a two-week low.

By 1215 GMT, the dollar-denominated RTS index was

unchanged at 1,162.6 points. The rouble-based MOEX Russian index

gained 0.2% to 3,422.3 points, hitting its strongest

point since Feb. 21, 2022.

One reason for stock market strength could be central bank

Governor Elvira Nabiullina's comments that interest rates may be

lowered from 16% in the second half of this year, said Sinara

Investment Bank.

"Loans have become more expensive, but the choice now is

this: either more expensive loans or higher inflation,"

Nabiullina said in the State Duma, Russia's lower house of

parliament. "As inflation slows, we will move to lower the key

rate."

The bank has held its main interest rate at 16% at its two

meetings so far this year. It next convenes on rates on April

26.

"On the whole, the market continues to grow on the

enthusiasm of retail investors... who, in our view, should pay

more attention to fundamental factors," Sinara analysts said in

a note.

High oil prices are also helping Russian stocks. Brent crude

oil, a global benchmark for Russia's main export,

rose 0.2% to $90.54 a barrel.

The rouble has traded in a relatively narrow band for the

last month or so, but touched its weakest point since March 26

during the session. It was last 0.1% lower against the dollar

at 92.75.

Against the euro, the rouble fell 0.2% to

100.79 and was 0.2% weaker at 12.80 against the yuan

.

($1 = 92.6575 roubles)

(Reporting by Alexander Marrow; Editing by Andrew Heavens and

Emelia Sithole-Matarise)