Bank of Russia Announces Key Interest Rate Cut

2025-09-14 01:31:31

(MENAFN) The Bank of Russia announced on Friday that it has reduced its key interest rate by 1 percentage point to 17%, marking the third rate cut since June.

In a statement, the central bank noted, "Stable indicators of the current price growth have not changed significantly and remain mostly above 4 percent year-on-year. The economy continues to return to a path of balanced growth. Credit growth has accelerated in recent months. Inflation expectations remain high."

Currently, Russia's annual inflation stands at 8.2 percent, with the central bank projecting a decline to 6-7 percent by 2025. Inflation is expected to further drop to 4 percent by 2026, maintaining the targeted range thereafter.

The statement also highlighted a continuing reduction in the share of businesses facing labor shortages, while wages have risen at a slower pace than in 2024 but still exceeded labor productivity growth.

"Unemployment is at its record lows," the bank added.

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