Bank of Russia Cuts Key Rate by 25 Basis Points to 14.25%
Quick Look
- 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.
AI-generated summary
Why It Matters
The Bank of Russia's Board of Directors decided to cut the key rate by 25 basis points to 14.25% per annum. This follows a period of moderate economic growth after a temporary decline at the start of the year.
MOSCOW, June 19. /TASS/. The Bank of Russia has cut its key rate by 25 basis points to 14.25% per annum, according to the regulator's press release.
"On 19 June 2026, the Bank of Russia Board of Directors decided to cut the key rate by 25 basis points to 14.25% per annum. Economic growth continues at a moderate pace after a temporary decline at the beginning of the year. The underlying price growth has edged down but remains generally in the range of 4-5% in annualised terms, as estimated by the Bank of Russia. Lending growth has accelerated in recent months. Fiscal policy over the three-year horizon will be more accommodative than previously expected. This may require a higher key rate path than assumed in the April baseline scenario," the regulator said.
What to Watch
AI outlook — possibilities, not facts
Higher key rate path than April baseline scenario.
Possible · Medium term
Open Questions
- Will fiscal policy remain accommodative?
- What is the precise impact on inflation?
- How will lending growth evolve?
