Russian Central Bank Cuts Key Interest Rate
(MENAFN) The Russian Central Bank announced on Friday that it would reduce its primary interest rate by 50 basis points, bringing it down to 16.5%.
The central bank explained that the Russian economy is steadily returning to a path of balanced growth.
Financial markets had anticipated that the central bank would maintain the rate at 17% during this session.
The new rate represents an 11-month low and marks the fourth consecutive reduction in the key rate.
In an official statement, the central bank highlighted that "underlying measures of current price growth have not changed significantly and remain above 4% in annualized terms," while also noting that inflation expectations continue to be elevated.
The institution emphasized that it will preserve monetary conditions "as tight as necessary" to bring inflation back to its target by 2026.
According to the bank, "annual inflation will decline to 4.0–5.0% in 2026," while one-off pro-inflationary factors are associated with revisions in the 2026 projection.
Looking ahead, the central bank projected that inflation would reach 4% in the second half of 2026 and stay within the target range of 4% through 2027 and beyond.
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