Central Bank of Russia updates average key rate forecast for 2026, raises target for 2027 and 2028

MOSCOW. Oct 23 (Interfax) - The Central Bank of Russia has updated its average key rate forecast for 2026 to 14.6%, from the 14.5%-14.6% range it expected in July, the regulator said in its medium-term macroeconomic forecast.

"Given that the average key rate from January 1 to October 25, 2026 is 14.7%, it will be 14.0% after rounding from October 26 through the end of 2026, which enables the key rate to be either maintained or changed at the December 2026 meeting," the regulator said.

The market and analysts have been concerned more about the average key rate forecast for next year, which the Central Bank has raised to 12.5%-13.5% from 10.5%-12.5%.

The rate trajectory for 2028 was increased to 9%-10% from 8%-9%.

The average key rate forecast for 2029 remained at 7.5%-8.5%, considered a neutral range.

The CBR on Friday decided to hold the key rate at 14% per annum, accompanying the decision with a neutral signal.