The Bank of Russia held its key rate at 14.00% per annum, citing persistent price pressures and high inflation expectations amid moderate economic growth. The rate was down from 16.50% in October 2025 following cuts including a 25-basis-point reduction in July 2026. The central bank projected annual inflation of 7.1–7.6% at end-2026 and a return to its 4.0% target in 2027, noting that temporary production-capacity reductions continued to sustain underlying price growth. Economic activity expanded moderately in the second half of 2026, while lending remained elevated, driven primarily by corporate borrowers. Risks from a deterioration in the global economic outlook and rising global price pressures amid geopolitical tensions continued to weigh on the inflation outlook. The central bank’s baseline envisaged an average key rate of 12.5–13.5% in 2027, with further decisions dependent on inflation, inflation expectations and domestic and external risks.
Central Bank of Russia Holds Key Rate at 14.00%
The Central Bank of Russia held its key rate at 14.00% per annum, citing persistent price pressures and high inflation expectations amid moderate economic growth. It projected annual inflation of 7.1–7.6% at end-2026 and a return to its 4.0% target in 2027.