US EditionRussia cuts interest rates from two-decade high as economy slows
- The Russian Central Bank cut its key interest rate by 100 basis points to 20 percent on June 6, 2025, marking the first reduction since September 2022.
- The cut followed a peak rate of 21 percent in October 2024, driven by high inflation, economic slowdown, and political pressure to ease borrowing costs.
- The bank highlighted easing inflationary pressures, with annual inflation falling from 10.7 percent in January to around 6.2 percent by April 2025, though inflation remains above 10 percent overall.
- In a statement, the Central Bank said it will maintain tight monetary policy until inflation and inflation expectations sustainably decline, aiming for 4 percent inflation by 2026.
- The rate cut suggests cautious optimism about Russia's gradual return to balanced growth amid structural challenges, but future decisions depend on inflation trends and economic conditions.
52 Articles
52 Articles
In order to counter high inflation, the Russian central bank had raised the key interest rate to an unprecedented level. However, Putin did not like this – a power struggle arose.
The Bank of Russia announced on June 6th the reduction of its key interest rate to 20%, the first reduction since September 2022. This decision, taken by the Central Bank’s Board of Directors, marks a clear sign: the Russian economy is steadily moving towards a stable and balanced recovery, despite sanctions and external economic pressure. READ ALSO: Slovakia challenges the EU and rejects new sanctions against Russia “Inflationary pressures cont…
RECIT - On Friday, the BCR reduced its policy rate to 20%, a level that has remained the highest in two decades. Inflation would have dropped to under 10% in early June.
Russia cuts key interest rate for first time since 2022
Russia's central bank on June 6 lowered its soaring interest rate from 21% to 20%, indicating easing pressures from inflation. The decision marks Russia's first rate cut since September 2022. The central bank decreased rates by 100 basis points, bringing it to 20% from the 21% rate established in October 2024 — the country's highest level since the early 200s. The move follows a drop in inflation, which fell from 10.7% in January to 6.2% in Apri…
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