The Central Bank cut the key interest rate to 16.5% per annum.

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The Bank of Russia has lowered the key interest rate by 50 basis points to 16.5% per annum.

The Central Bank reports that sustainable indicators of current price growth have not changed significantly and remain above 4% on an annualized basis. The economy continues to show a trend of returning to balanced growth. In particular, in recent months, there has been a noticeable increase in lending. Inflation expectations remain high.

The Bank of Russia will maintain a tight monetary policy. According to the baseline forecast for 2026, it is expected that the average key interest rate will vary in the range of 13-15% per annum. Annual inflation will decrease to 4.0-5.0%. By the second half of next year, sustainable inflation is expected to reach 4%.