Russia's Central Bank has reduced its key rate by 50 basis points to 14.5% per annum, the regulator stated in a press release following its board of directors meeting.
Domestic demand dynamics have roughly corresponded to the economy’s capacity to ramp up supply of goods and services, according to the regulator’s press release.
There is still significant uncertainty regarding the external environment and fiscal policy parameters, the press release said.
The Bank of Russia has narrowed its forecast corridor for the average key rate through the end of 2026 from 13.5-14.5% to 14-14.5%. Moreover, the average key rate is currently projected at 8-10% in 2027 instead of the previously expected 8-9%, according to the Central Bank.
Expectations for future inflation remain elevated, which may impede a sustainable slowdown in inflation, the regulator noted.
According to the Bank of Russia’s forecast, given the monetary policy stance, annual inflation will decline to 4.5-5.5% in 2026. Underlying inflation will be close to 4% in the second half of this year, staying on target in 2027 and beyond.
As of April 20, 2026, annual inflation stood at 5.7%, according to the Central Bank.
