economy

April 25, 2026

Bank of Russia cuts key rate to 14.5% per annum: what is known about decision

Meanwhile, measures of underlying price growth have not yet decreased and remain in the range of 4-5% in annualized terms, as estimated by the Bank of Russia

Bank of Russia cuts key rate to 14.5% per annum: what is known about decision

TL;DR

  • Bank of Russia cut its key rate by 50 basis points to 14.5% per annum.
  • Domestic demand dynamics have aligned with the economy's supply capacity.
  • Underlying price growth remains between 4-5% annually.
  • The forecast corridor for the average key rate through 2026 has been narrowed to 14-14.5%.
  • The Russian economy slowed in Q1 2026, with subdued investment activity.
  • Annual inflation is projected to decline to 4.5-5.5% in 2026.
  • Unemployment remains at historical lows despite gradual decreases in labor market tightness.
  • The forecast for oil prices for tax purposes in 2026 was raised from $45 to $65 per barrel.
  • Forecasts for growth in bank lending to companies and mortgage lending were narrowed.
  • The ruble's exchange rate remained largely unchanged following the decision.
  • The MOEX Index moved into negative territory after the announcement.

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