The Bank of Russia cut its key rate by 50 bp to 14.50% p.a. at the 24 April 2026 meeting, citing domestic demand that is broadly matching supply capacity while annualised underlying price growth remains elevated at 4–5% and overall disinflation is clouded by significant external and fiscal uncertainties. The move extends an easing cycle that has lowered the policy rate by a net 650 bp since it stood at 21.00% in April 2025. Annual inflation was 5.7% on 20 April and Q1 seasonally adjusted price growth re-accelerated to 8.7% annualised, with core inflation up to 6.3%, yet the central bank still projects headline inflation at 4.5–5.5% and underlying inflation near 4% in H2 2026, alongside unchanged GDP growth expectations of 0.5–1.5% for 2026. Labour-market tightness is easing as reports of labour shortages fall, though unemployment remains at record lows and wage growth continues to outpace productivity, while lending activity and investment stay subdued amid tight albeit slightly easier monetary conditions and households’ high propensity to save. The central bank flags prevailing pro-inflationary risks from deteriorating global growth prospects, rising external price pressures and heightened geopolitical tensions, and warns that any fiscal loosening that widens the structural deficit would necessitate a tighter stance. It will judge the need for further cuts based on the durability of the inflation slowdown and the path of expectations, with the baseline assuming an average ke
Central Bank of Russia 2026-04-24
Bank of Russia cuts key rate by 50 bp to 14.50% on 24 Apr 2026
Bank of Russia cut its key rate by 50 bp to 14.50%, extending a 650 bp easing cycle since April 2025, citing a better demand-supply balance even as underlying inflation holds at 4–5% with significant external and fiscal risks. It maintains 2026 inflation at 4.5–5.5% and will decide on further cuts as disinflation firms, assuming an average rate of 14.0–14.5% next year and 8.0–10.0% in 2027.