Russia's Central Bank Holds Rate at 14%, Worsens Inflation Forecast
The regulator said underlying price growth has stopped declining as higher utility tariffs and war-related strains keep inflation pressures elevated.
- On Friday, the Central Bank of Russia held its key interest rate at 14% at its October 23 policy meeting, while raising its 2026 year-end inflation forecast to 7.1%-7.6%.
- Ukrainian drone and missile attacks on energy infrastructure and commercial warehouses in recent months have raised costs for goods and services, while Russia continues straining government finances through war spending.
- Seasonally adjusted current price growth averaged 8%, while core inflation increased to 6.2% from 4.5%. The Central Bank estimates underlying price growth remains at 5-6% annualized and is no longer declining.
- While current fiscal parameters remain consistent with the baseline disinflation scenario, the CBR explicitly warned that changes to those parameters could require adjustments to monetary policy.
- Annual inflation is expected to return to the Central Bank's 4% target in 2027, with the next rate-setting meeting scheduled for December 18.
22 Articles
22 Articles
The central bank of Russia maintained the basic interest rate unchanged by the second consecutive meeting this Friday and signaled only a slight reduction in the cost of credit for next year, since inflation must remain persistently high. Exclusive material for subscribers. To have full access, access the link of the subject and register.
The Russian Central Bank has left the reference interest rate unchanged at 14% per annum. (ANSA)
Russian Central Bank Holds Key Interest Rate Steady
Russia’s Central Bank decided to hold its key interest rate at 14% during its latest meeting on Friday, weighing inflation risks against the need to lower currently high borrowing costs for businesses and consumers as the Kremlin prioritizes spending on the war against Ukraine.
The Central Bank of Russia decided to keep the key rate unchanged at 14 per cent per annum. "On October 23, 2026, the Board of Directors of the Bank of Russia decided to keep the key rate at 14 per cent per annum," according to a statement by the Bank of Russia. The Central Bank's statement also noted an increase in current price pressures, as well as high inflation expectations. "The Bank of Russia estimates that sustained price increases do no…
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