Bank of Russia may pause key rate cuts in September, says Anatoly Aksakov

MOSCOW, August 29. /TASS/. State Duma Financial Market Committee Chairman Anatoly Aksakov said the Bank of Russia could pause its key rate cuts at the next meeting of its Board of Directors in September, he said in an interview with TASS ahead of the Eastern Economic Forum (EEF).

"A pause in rate cuts at the upcoming September meeting of the Bank of Russia’s Board of Directors cannot be ruled out. But the long-term trend remains unchanged - the key rate will decline and loans for businesses will become cheaper," he said.

According to Aksakov, rapidly lowering the key rate amid high inflation does not automatically lead to lower lending rates, as the cost of money declines when the market does not expect price shocks.

At the same time, the lawmaker did not rule out the key rate falling to 13% or lower by the end of 2026. "A reduction in the rate to 13% or lower by the end of the year remains possible, but it is not the baseline scenario. For that to happen, the situation on the fuel market would need to stabilize, while the secondary effects of rising gasoline prices, the current weakening of the ruble and the upcoming indexation of utility rates would need to remain limited and not become entrenched in elevated inflation expectations," he said.

On July 24, 2026, the Bank of Russia decided to lower its key rate from 14.25% to 14% per annum, contrary to analysts’ forecasts that it would remain unchanged. The next meeting of the Board of Directors will be held on September 11.

The Eastern Economic Forum will be held on September 1-4 in Vladivostok on the campus of the Far Eastern Federal University. The forum is organized by the Roscongress Foundation with the support of the Russian government. TASS is the general information partner.