The Bank of Russia kept the key interest rate at 14% per annum. The decision of the Board of Directors is the second in a row without change, after the rate remained at the same level at the meeting on September 11. The move coincided with the expectations of analysts, who unanimously predicted that the interest rate would be maintained.
The Central Bank reports moderate growth of the Russian economy in the second half of 2026, but indicates that price pressures remain elevated. Inflation expectations are also high, which limits the possibilities for a faster interest rate reduction.
„Sustainable price growth is not decreasing and is in the range of 5-6% on an annual basis“, the Bank of Russia said in a statement. According to its assessment, this is primarily due to the temporary reduction in production capacity in individual industries.
“This requires a moderate increase in aggregate demand to resume the downward trend in sustainable inflation“, the central bank said.
Next decision in December
The Bank of Russia emphasizes that future decisions on the key interest rate will depend on the dynamics of inflation and inflation expectations, as well as on risks associated with domestic and external conditions.
The next meeting of the Board of Directors, at which the level of the key interest rate will be considered, is scheduled for December 18, 2026. The press release on the decision will be published at 1:30 p.m. Moscow time.
In its updated baseline scenario, the Bank of Russia predicts the average key interest rate in 2027 to be in the range of 12.5-13.5% per year. According to its forecast, annual inflation should return to 4% next year and remain around the target level thereafter.
Sources: news.bg