US EditionRussia economy shrinks as costs of war on Ukraine, sanctions mount
The central bank cited slowing growth and persistent inflation risks as it weighed further cuts against a widening budget deficit.
- On Friday, April 24, 2026, the Bank of Russia cut its key interest rate by 50 basis points to 14.5%, marking the eighth consecutive reduction in its monetary easing cycle.
- President Vladimir Putin ordered officials to boost growth last week after warning that the economy's 'trajectory' was 'currently below expectations,' following a contraction in the first two months of 2026.
- Annual inflation stood at 5.7% as of April 20, yet the Central Bank cautioned that sustained high state spending could force borrowing costs to remain elevated despite recent easing efforts.
- Moscow reported a $60 billion budget deficit in the first three months of 2026, exceeding annual projections and constraining the regulator's room for further monetary policy adjustments.
- Policymakers forecast annual inflation will cool to between 4.5% and 5.5% later this year, eventually reaching a 4% target in 2027, provided external conditions and fiscal policy parameters stabilize.
16 Articles
16 Articles
Russian Central Bank Cites “Unfavorable Weather Conditions” in Economic Slowdown
The Russian economy continues to weaken, with the Central Bank of Russia citing weather conditions as one of the factors behind the slowdown. According to a report by The Moscow Times on April 24, the central bank noted a slowdown in the first quarter of 2026. This assessment accompanied a decision to lower the key interest rate for the eighth consecutive time, moving from 15% to 14.5%. We bring you stories from the ground. Your support keeps o…
Russia’s Nabiullina on central bank rate cut and economic outlook
MOSCOW, April 24 (Reuters) – Russian Central Bank Governor Elvira Nabiullina addressed a press conference on Friday after the central bank cut its key rate by 50 basis points to 14.5%. Nabiullina spoke in Russian. The quotes below were translated into English by Reuters. ON THE KEY RATE DECISION “Two options were discussed: keeping the rate unchanged and cutting it by half a percentage point. Those in favour of keeping the rate unchanged point…
Russia’s Central Bank Cuts Key Rate to 14.5%
Russia’s Central Bank lowered its key interest rate from 15% to 14.5% on Friday, marking its eighth consecutive cut since beginning a policy of monetary easing after previously hiking borrowing costs to a two-decade high to curb surging inflation.
Moscow cut its key interest rate on Friday, days after Russian President Vladimir Putin expressed concern about the slowing economy and ordered a drive to boost growth.
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