Bank of Russia Governor Elvira Nabiullina stated the regulator considered both reducing and maintaining the key rate, with isolated proposals to raise it, following a board meeting. She noted the analysis of the fuel situation and government measures to stabilize the market.
The Bank of Russia may pause its key rate-cutting cycle at its upcoming meeting, influenced by recent domestic fuel market events impacting inflation dynamics and rising inflation expectations, according to experts.
Federal Reserve officials remain divided on the future path of inflation, with some expecting it to cool as energy prices fall and tariffs fade, while others worry about AI buildout driving up tech costs. Minutes from the June meeting reveal a split on whether interest rates will rise or stay unchanged by year-end.
Bloomberg Economics forecasts Russia's key interest rate to fall to 13% by the end of 2026 and further decrease to 10% by the end of 2027. The Bank of Russia is expected to continue easing monetary policy, albeit at a slower pace.
Sberbank's CFO Taras Skvortsov announced a revised forecast for the Central Bank of Russia's key rate, expecting it to reach 13% by year-end, up from an earlier 12-13% range. This adjustment follows the Bank of Russia's recent rate cut to 14.25%.
Central Bank chief Elvira Nabiullina stated that despite a one-third increase in investments over the past three years, labor productivity has not yet risen. She noted that access to cheap money is crucial for technological investment and productivity growth.
Central Bank chief Elvira Nabiullina stated at the Financial Congress in St. Petersburg that the Bank of Russia does not favor high interest rates, emphasizing the need for affordable loans and fair competition, while urging caution on the term "economic cooldown."
VTB Bank's First Deputy CEO Dmitry Pyanov stated that the bank expects the Central Bank of Russia to increase its average key rate forecast for 2027 from 8-9% to 10-11% at the next meeting, citing the primary budget deficit.
The Bank of Russia lowered its key interest rate to 14.25% from 14.5%, a smaller cut than anticipated. Factors influencing the decision include increased war spending, Western sanctions, and a fuel crisis exacerbated by Ukrainian drone strikes on Russian refineries.
Bank of Russia Governor Elvira Nabiullina stated that key rate decisions must be forward-looking due to lags in monetary policy's impact on the economy and prices. She noted declining price growth but acknowledged risks of future inflation acceleration, emphasizing the need for pauses to assess information and policy effects.
Bank of Russia Governor Elvira Nabiullina stated that the scope for further key rate reductions has diminished. The central bank recently cut its key rate to 14.25%.
The Bank of Russia will revise its key rate forecast at the upcoming July Board meeting, announced Central Bank chief Elvira Nabiullina. She stated that while a specific figure cannot be given yet, more certainty is expected by the next meeting, with potential changes affecting the years 2026-2027.
Russia's Foreign Ministry warns NATO countries of a devastating response if Russia is attacked. Meanwhile, reports indicate a US-Israeli strike on a humanitarian aid aircraft in Iran, and attempted Ukrainian drone attacks on Moscow.
The MOEX index fell by 1.3% to 2,409.53 points following the Bank of Russia's decision to cut its key rate by 25 basis points to 14.25%. The ruble strengthened against the yuan, while the US dollar gained and the euro fell against the ruble.
The Bank of Russia has reduced its key interest rate by 25 basis points to 14.25% per annum. The decision comes as economic growth continues at a moderate pace, with underlying price growth edging down, though lending growth has accelerated. The regulator noted that a more accommodative fiscal policy may necessitate a higher key rate path in the future.
An expert believes the Bank of Russia will likely maintain its key interest rate at 14.5% during its upcoming meeting on June 19, citing global macroeconomic and geopolitical factors. While the market anticipates gradual easing, significant rate cuts are deemed improbable.
21 out of 23 experts surveyed by TASS predict the Bank of Russia will lower its key rate to 14% on June 19, citing falling inflation and a strengthening ruble. However, some analysts warn of accelerating monthly inflation and rising expectations.
Sollers Group CEO Nikolay Sobolev anticipates a recovery in the Russian automobile market during the second half of this year. He projects the market to reach approximately last year's level in 2026, with a key factor for this revival being a reduction in the key interest rate.
Russian President Vladimir Putin expressed optimism about future key rate reductions, citing successful measures against inflation. He believes professionals and investors should evaluate these developments.
Expert RA CEO Marina Chekurova predicts the Bank of Russia will cut its key rate by 50 basis points on June 19, with further gradual reductions to 12% by December. She noted the economic situation warrants a faster cut but warned external shocks or accommodative fiscal policy could slow easing.
A Russian lawmaker stated the Central Bank plans to cut its key rate to 13.5% at the next meeting. Meanwhile, reports indicate significant Ukrainian troop losses, shelling of Russian regions, and Russian control over African Corps strongholds in Mali. Other news includes US-Iran deal talks, French seizure of a tanker, and a large explosion over the US.
Russia will launch a new lending program for small and medium-sized enterprises (SMEs) in July with a limit of 150 billion rubles ($2.09 billion) and an interest rate equal to the key rate, Deputy Prime Minister Alexander Novak announced.
Federal Reserve maintains its key interest rate steady while four officials vote against the decision, marking the highest number of dissenters in nearly 34 years.
WASHINGTON, April 29 (Yonhap) -- The U.S. Federal Reserve on Wednesday held its ...
