From 15% down to 14.5% APY!
In her statement, Central Bank Chair Elvira Nabiullina pointed out that economic activity is slowing down, and the demand dynamics are roughly in line with the potential for supply expansion. However, inflation remains above target: in March, the current price growth rates stayed around 6% due to one-off factors.
The regulator discussed two options: keeping the rate unchanged or cutting it by 0.5 percentage points. Advocates for maintaining the rate highlighted that since mid-last year, the core inflation level in the country has not decreased and remains at around 4-5%. They also noted the increased inflationary risks.
Nabiullina emphasized that future decisions regarding the key rate largely depend on how the situation develops and to what extent the risks she mentioned materialize.
The forecast for the average key rate for 2026 has been raised to 14-14.5%, and for 2027 to 8-10%.
In her statement, Central Bank Chair Elvira Nabiullina pointed out that economic activity is slowing down, and the demand dynamics are roughly in line with the potential for supply expansion. However, inflation remains above target: in March, the current price growth rates stayed around 6% due to one-off factors.
The regulator discussed two options: keeping the rate unchanged or cutting it by 0.5 percentage points. Advocates for maintaining the rate highlighted that since mid-last year, the core inflation level in the country has not decreased and remains at around 4-5%. They also noted the increased inflationary risks.
Nabiullina emphasized that future decisions regarding the key rate largely depend on how the situation develops and to what extent the risks she mentioned materialize.
The forecast for the average key rate for 2026 has been raised to 14-14.5%, and for 2027 to 8-10%.
