MOSCOW, September 12. /TASS/. The Bank of Russia has cut the key rate for the third consecutive time, this time by 1 percentage point (pp), bringing it down to 17% per annum, the regulator said in a statement.
"Underlying measures of current price growth have not changed significantly and generally remain above 4% in annualized terms. The economy continues to return to a balanced growth path. Lending growth has accelerated in recent months. Inflation expectations remain high," the statement said.
The regulator noted that it intends to maintain such a level of monetary policy strictness as necessary to bring inflation back to target by 2026, and that further decisions on the key rate will depend on the sustainability of the inflation slowdown and the dynamics of inflation expectations.
The Bank of Russia also noted that, taking into account the ongoing monetary policy, annual inflation is expected to decline to 6-7% in 2025, return to 4% in 2026, and remain aligned with the target thereafter. "Most indicators of underlying inflation are in the range of 4-6% in annualized terms. As of 8 September 2025, annual inflation stood at 8.2%," the regulator said.
The Bank of Russia stated that the upward deviation of the Russian economy from the trajectory of balanced growth is narrowing. At the same time, a significant slowdown is observed in sectors oriented toward external demand, whereas growth in consumer activity has even slightly accelerated.
