Central Bank of Russia keeps key rate at 14% per annum

MOSCOW. Sept 11 (Interfax) - The board of directors of the Central Bank of Russia kept the key rate at 14% per annum at its meeting on Friday after a series of cuts over the previous ten meetings.

The decision matches the expectations of most analysts. Only a few experts allowed for the possibility of a cut of 25 basis points (bps) to 13.75%.

"The economy as a whole is growing at a moderate pace in Q3 2026. Current price pressures have increased significantly in recent months," the Central Bank of Russia said in a press release issued following the meeting.

According to the CBR's assessment, underlying price growth accelerated to 5%-6% in annual terms, primarily due to the impact of a temporary reduction in production capacities in certain industries. As these effects are exhausted and with restrained growth of aggregate demand, the slowdown in underlying inflation will resume, it said.

The Central Bank will make further decisions on the key rate based on the dynamics of inflation and inflation expectations as well as the analysis of risks posed by domestic and external conditions.

Prior to this, the CBR cut the rate over the course of ten meetings. In July and June, a step of 25 bps was applied. Before that, such a step was last used six years ago (in July 2020, though at that time the rate was in single-digit territory - it was cut from 4.5% to 4.25%).

Previously, on April 24, the rate was cut by 50 bps to 14.5% per annum. The same step was taken on March 20, when the rate was also cut by 50 bps to 15% per annum, as well as on February 13, December 19 and October 24, 2025. In September last year, a decision was made for a more substantial reduction of the rate - by 100 bps. Before that, on July 25, the CBR's board of directors decided to cut it by 200 bps in one go, to 18% per annum from 20% per annum.

Before that, for the first time in more than two and a half years, a decision to cut the rate (by 100 bps from 21% per annum) was made on June 6, 2025.

Until June, the Central Bank had kept the rate at 21% per annum for four meetings in a row after raising it on October 25, 2024, by 200 bps from 19%.

The next meeting of the Central Bank's board of directors on the rate will be held on October 23.