The central bank lowered its key rate for the fourth time in a row

The Bank of Russia continued to ease monetary policy, lowering its key rate by 0.5 percentage points to 16.5% per annum. The relevant decision was made by the board of directors of the regulator on October 24 and published on the official website of the agency.

In justifying its move, the Central Bank pointed out that steady consumer price growth remains above the target level of 4% in annual terms. Tight monetary policy remains in place to bring inflation back to target.

According to the regulator's forecasts, annual inflation reached 8.2% as of October 20, and by the end of 2025 it is expected to be in the range of 6.5–7%. By 2026, the Central Bank plans to reduce inflation to 4-5%. The main risks for price dynamics are the growth of domestic demand, the increase in VAT and the deterioration of foreign trade conditions.

Cautious approach: how the key rate will change at the October meeting of the Central Bank

It may remain at 17% per annum.

On September 9, Russian Finance Minister Anton Siluanov announced that it is currently necessary to lower the key rate and economic rates, for which actions on a balanced balanced budget are justified. According to him, the Central Bank is currently closely monitoring the budget deficit and its impact on monetary policy.

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