MOSCOW, June 6. /TASS/. The Bank of Russia has lowered the key interest rate by 100 basis points to 20% after maintaining it at 21% annually for an extended period. At the same time, the regulator emphasized the need for a sustained period of tight monetary policy, the Bank of Russia said in a press release.
"On June 6, 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," the regulator stated.
The regulator noted that in April 2025, the current seasonally adjusted price growth slowed to 6.2% on an annualized basis after averaging 8.2% in the Q1 of 2025. "The similar indicator of core inflation was 4.4% after the average of 8.9% in the previous quarter. Concurrently, most indicators of underlying inflation were in the range of 5.5-7.5% in annualized terms. High-frequency data in May showed a further decline in the current price growth, although with a significant contribution from volatile components. As of 2 June 2025, annual inflation slowed to 9.8%," the statement said.
