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

MOSCOW. Oct 23 (Interfax) - The Central Bank of Russia's board of directors has left the key rate unchanged for the second meeting in a row, at 14% per annum.

A similar decision was made at the previous meeting on September 11.

The decision matches the expectations of analysts, who unanimously forecast that the rate would be maintained.

"The economy as a whole is growing at a moderate pace in H2 2026. Current price pressures remain elevated. Inflation expectations stay high. According to the Bank of Russia's estimates, underlying price growth has not yet decreased and remains in the range of 5%-6% in annualised terms, primarily due to the impact of a temporary reduction in production capacities in certain sectors. This requires aggregate demand to grow moderately for underlying inflation to resume its decline," the Central Bank said in a press release issued following the meeting.

The Central Bank will make further decisions on the key rate depending on the dynamics of inflation and inflation expectations, as well as on its assessment of risks from internal and external conditions.

Prior to the decision to keep the rate in September, the CBR cut the rate for ten meetings in a row. A cut of 25 basis points (bps) was applied in July and June. Before that, such a step had last been used six years ago (in July 2020, though at that time the rate was in single digits - 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 to lower the rate more substantially - 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.

Prior to 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 last year.

Until June last year, 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 December 18.