Bank of Russia cuts the key rate by 100 bp to 20.00% p.a.

     Bank of Russia, June 6th 2025 - On 6 June 2025 - The Bank of Russia Board of Directors decided to cut the key rate by 100 basis points to 20.00% per annum. Current inflationary pressures, including underlying ones, continue to decline. While domestic demand growth is still outstripping the capabilities to expand the supply of goods and services, the Russian economy is gradually returning to a balanced growth path.
     The Bank of Russia will maintain monetary conditions as tight as necessary to return inflation to the target in 2026. This means that monetary policy will remain tight for a long period. Further decisions on the key rate will be made depending on the speed and sustainability of the decline in inflation and inflation expectations. According to the Bank of Russia’s forecast, given the monetary policy stance, annual inflation will return to 4.0% in 2026 and stay at the target further on.