Russia interest rate

Moscow — The Bank of Russia retained its interest rate after series of rate reductions, as Ukraine drone attacks on oil refineries pushed up inflationary pressures.

The Board of Directors decided to hold the key rate at 14.00%, as widely expected.

The bank started its massive monetary policy easing in June 2025, when the interest rate was 21.00%.

The board noted that underlying price growth accelerated to 5-6% in annualized terms, primarily due to the impact of a temporary reduction in production capacities in certain sectors.

Russia interest rate

Given the monetary policy stance, annual inflation was estimated at 6.0-7.0% in 2026. Inflation is expected return to 4.0% in 2027 and to stay on target further on.

Policymakers observed that inflation expectations remain elevated which is likely to impede a sustained slowdown in inflation.

“Taking into consideration the dynamics of inflation expectations, the overall tightness of monetary conditions has decreased slightly in real terms,” the bank said.