Russian Central Bank Holds Key Rate at 14%
Policymakers kept borrowing costs steady as fuel prices and reduced industrial output pushed annual inflation to 6.3%, above the bank’s target.
- On Friday, The Central Bank held its key interest rate at 14% for the first time in 18 months, citing rising fuel costs from Ukrainian drone attacks on oil refineries and a "temporary reduction in production capacities" as complicating inflation management.
- Price pressures increased significantly in recent months, with annual inflation reaching 6.3% by Sept 7 as Ukrainian drone attacks disrupted oil refinery operations and reduced domestic production capacity across key industries.
- Before this decision, The Central Bank had cut the key rate 10 times in a row beginning in 2025, with the final reductions of 25 basis points each bringing the rate down to 14% by July 2026.
- Policymakers maintained a full-year inflation forecast of 6% to 7%, expecting price growth to return to 4% next year. Earlier, Vladimir Putin stated at the Eastern Economic Forum that Russia does not have an "overly tight monetary policy."
- Underlying price growth accelerated to an annualized 5% to 6%, driven by temporary production constraints. The Central Bank expects the decline in underlying inflation to resume as aggregate demand remains restrained and temporary effects fade.
28 Articles
28 Articles
The Russian Central Bank is showing interest at 14% after 10 consecutive cuts, with rising price pressures and threatening to push inflation to higher levels.
Russian central bank holds key rate steady ahead of election
In a recent decision, Russia's central bank opted to hold the benchmark interest rate at fourteen percent. Economic challenges have intensified due to heightened price pressures. Furthermore, Ukrainian drone attacks on oil refineries have resulted in fuel scarcity and price hikes. Positive news came from a reduction in the budget deficit, supported by dividend influxes and soaring oil prices.
Russia's central bank holds the key interest rate at 14 percent despite a slump in the economy. This is due to the growing price pressure – also due to Ukrainian attacks on refineries.
The main thing is by this hour. The Bank of Russia kept the key rate at 14% per annum, the regulator explained the decision by increasing price pressure and rising steady inflation to 5-6% in annual terms
The main thing by this hourThe Bank of Russia has kept its key rate at 14% per annum.The regulator explained the decision by increasing price pressure and an increase in steady inflation to 5-6% per year.Lukashenko instructed...
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