Bank of Russia Maintains Key Interest Rate at 14%
Regulator cites elevated inflation expectations and increased price pressures as reasons for holding rates steady.
Quick Look
- The Bank of Russia has kept its key interest rate at 14% for the first time since June 2025, citing persistent inflation and elevated price pressures.
- Following the announcement, the MOEX Index fell by over 1%, while the ruble showed minimal movement.
AI-generated summary
Why It Matters
The Bank of Russia has maintained the key rate at 14% to combat inflation, which reached 6.3% as of September 7, 2026. Underlying price growth is currently estimated at 5-6% annually.
MOSCOW, September 11. /TASS/. The Bank of Russia has decided not to lower the key rate for the first time since June 2025, keeping it at 14% per annum.
TASS has compiled the main facts about the decision.
Central Bank’s announcement
The Bank of Russia has decided not to lower its key rate first since June 2025, keeping it at 14% per annum, according to the regulator’s press release following its board meeting.
Current price pressures have increased in recent months, the regulator noted.
The Central Bank will make further key rate decisions based on the dynamics of inflation and inflation expectations, according to the document.
Underlying price growth has accelerated to 5-6% in annualized terms, primarily due to the impact of a temporary reduction in production capacities in certain sectors, the regulator added.
The Russian economy as a whole has been growing at a moderate pace in Q3 2026, according to high-frequency data, the Central Bank said.
The overall tightness of monetary conditions has decreased slightly in real terms, considering the dynamics of inflation expectations, the press release said.
Inflation expectations of households, businesses, and financial market participants in Russia have changed diversely, remaining elevated though, which may impede a sustained slowdown in inflation, the regulator noted.
As of September 7, 2026, annual inflation stood at 6.3%, the Bank of Russia said.
The labor market tightness is gradually easing, the regulator said, adding that labor shortages continue to decrease.
Wage growth is slowing and gradually converging with labor productivity growth, the document said.
Unemployment is near historic lows but has risen slightly in recent months, the Central Bank said.
Lending activity has been elevated in recent months, driven primarily by the corporate segment, according to the press release.
Ruble’s reaction
The ruble was down during trading on the Moscow Exchange, almost flat following the Central Bank’s decision on the key interest rate, according to trading data.
Specifically, prior to the publication of the regulator’s decision, the yuan exchange rate was up by 4.5 kopecks at 12.575 rubles, according to trading data as of 1:25 p.m. Moscow time (10:25 a.m. GMT).
As of 1:30 p.m. Moscow time (10:30 a.m. GMT), the yuan was up by 4.6 kopecks at 12.576 rubles
MOEX Index’s reaction
The MOEX Index was down by more than 1% following the Central Bank’s decision, according to trading data.
As of 1:25 p.m. Moscow time (10:25 a.m. GMT), before the publication of the Central Bank’s decision, the MOEX Index was down by 0.63% at 2,294.30 points.
By 1:32 p.m. Moscow time (10:32 a.m. GMT), the MOEX Index had extended losses to 1.14% reaching 2,282.51 points, while the RTS was down by 1.14% at 852.44 points.
The MOEX and RTS indices lost 0.37% to 2,300.28 and 859.08 points, respectively, as the main trading session started on Friday.
Open Questions
- When will the next rate adjustment be considered?
- How will production capacity constraints evolve?
