Russian Central Bank lowers key rate to 20%

The key rate has been lowered to 20%, according to a decision made at the meeting of the Russian Central Bank's Board of Directors on June 6.

The regulator noted that the current inflationary pressure, including underlying inflation, continues to decline.

"While domestic demand continues to outpace the ability to expand the supply of goods and services, the Russian economy is gradually returning to a balanced growth trajectory",

the Central Bank of Russia reported.

The Bank of Russia also announced the continuation of a tight monetary policy,

"Further decisions on the key rate will be made depending on the speed and sustainability of the decline in inflation and inflation expectations. According to the Bank of Russia's forecast, under the current monetary policy, annual inflation will return to 4.0% in 2026 and will remain close to the target level in the future",

the Central Bank said.

Let us remind you that the key rate had remained at 21% since the end of October.