The Russian Central Bank's board of directors on Sept. 11 decided to keep the key rate at 14%, the first time the regulator has opted not to cut it since mid-June 2025.The central bank decided against further rate cuts due to heightened inflation risks, as Russia has been grappling with fuel shortages and price surges caused by Ukrainian drone strikes.According to the central bank, Russia's economy is "growing at a moderate pace" in the third quarter of 2026, with investment continuing to recover from its earlier-year levels.It expects inflation to come in at 6-7% in 2026 and drop to 4% the following year.The central bank has faced pressure from Russian businesses to continue slashing the key rate, with some arguing that borrowing costs would remain too high until the rate falls to 10%-12%.The latest assessment comes a week before the Russian legislative elections, which are tightly controlled by the Kremlin but help the regime gauge public sentiment amid Moscow's ongoing war in Ukraine.