Russia's economy could recover from overheating sooner than expected, possibly in H1 2026 - Central Bank

MOSCOW. April 1 (Interfax) - Russia's economy has approached closing the output gap [recovering from overheating], which could happen sooner than had been expected in February [possibly in H1 2026], the Central Bank of Russia said in the summary of the key rate discussion of the meeting on March 20 that the regulator published on Wednesday.

The CBR cut the key rate to 15.0% per annum from 15.5% p.a. at the meeting.

The summary notes that maintaining the key rate would have posed heavy risks of future excessive cooling of the economy.

"Current data indicate that economic growth slowed substantially in Q1 2026," according to the summary.