US EditionRussian central bank cuts key rate by 50 bps after new US oil sanctions
- On Friday, the Russian Central Bank cut the key interest rate to 16.5% from 17%, marking the fourth consecutive cut since June.
- Rising fuel costs and seasonal food prices pushed inflation above eight percent in October, while Russia's finance ministry proposed a VAT rise to 22% from 20% in 2026.
- On an annual basis, inflation rose to 8.14% in the latest week, while Russia's weekly inflation gauge stayed above 0.2% for three weeks, with the Bank expecting 6.5%-7% by end of 2025.
- Russia's MOEX stock index climbed 1.4% to 2,606 after the rate cut but then fell to 2,535 within an hour, while Russian businesses say high borrowing costs are sapping growth this year.
- The regulator said it will keep policy 'as tight as necessary' to reach its 4% inflation target, which it now expects only in 2026-2027, with the next decision due December 19, 2025.
24 Articles
24 Articles
The Board of Directors of the Bank of Russia, at a meeting on 24 October, decided to reduce the key rate from 17% to 16.5%, as reported on the regulator's website.
Russian central bank cuts rate after new US oil sanctions
The Russian central bank cut its interest rate by 50 basis points to 16.5% at a board meeting today, its first since the government proposed raising VAT in 2026 and US President Donald Trump imposed sanctions on Russian oil companies.
Russian Central Bank Cuts Key Rate to 16.5% as Economy Slows
The Russian Central Bank on Friday announced that it was cutting the key interest rate to 16.5%, down half a percentage point from 17%. The quarter-point reduction marks the fourth consecutive rate cut since June, when the bank began easing policy from a wartime peak of 21%. Analysts were split ahead of the decision.
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