MOSCOW, July 24. /TASS/. The Bank of Russia has decided to lower its key rate from 14.25% to 14% per annum, contrary to analysts’ forecasts that it would remain unchanged. That said, the Central Bank pointed to the need for a more gradual rate reduction, according to the regulator’s press release.
"On July 24, 2026, the Bank of Russia Board of Directors decided to cut the key rate by 25 basis points to 14.00% per annum. <…> Considerable price growth and higher inflation expectations in the summer months were mainly associated with one-off factors. Measures of underlying inflation remain within the range of 4-5% in annualized terms. <…> Nevertheless, given the direct and second-round effects of the temporary decline in production capacities in certain sectors and more expansionary fiscal policy over a three-year horizon than projected in April, a smoother key rate decrease is required," the regulator said.
The Bank of Russia noted that it will make further key rate decisions based on the dynamics of inflation and inflation expectations as well as the analysis of risks posed by domestic and external conditions.
In Q2 2026, the current seasonally adjusted price growth averaged 5% in annualized terms compared to 8.7% in Q1 2026, and 4.3% in Q4 2025, the regulator noted. "On average, the similar indicator of core inflation was down to 4.2% from 6.2% in 2026 Q1 and 4.9% in 2025 Q4. Current price growth sped up in June-July. Price dynamics in recent months were considerably affected by volatile components, including motor fuel, fruit and vegetables. Measures of underlying inflation remained within the range of 4-5% in annualized terms. As of 20 July, annual inflation stood at 5.9%," the press release said.
