The Bank of Russia hit the brakes on its rate-cutting campaign on September 11, holding its key interest rate at 14% for the first time since June 2025. After more than a year of steady easing from a punishing 21% peak, the central bank decided the inflation picture had gotten too messy to keep loosening.
From 21% to 14%, and now a full stop
The most recent cut came on July 24, 2026, a modest 25-basis-point trim that brought the rate to its current 14%. That smaller cut was already a signal that the central bank was losing enthusiasm for further reductions. Now, the pause confirms it.
Annual inflation stood at 6.3% as of September 7, with the central bank projecting 6-7% for the full year. The target is 4%, and officials say they expect to reach it in 2027.
Fuel, fiscal spending, and the inflation cocktail
