Russia’s central bank holds key rate at 14% for the first time since 2025

Russia’s central bank maintained its key interest rate at 14% for the first time since June 2025, at a board meeting. The regulator reported that Russia’s economy is expanding "moderately" in the third quarter of 2026; however, prices have surged "significantly" over recent months. The underlying price growth quickened to an annualized rate of 5–6%, attributable to a temporary cut in production capacity in certain sectors.

As this effect wanes and aggregate demand growth remains sluggish, the dip in underlying inflation should resume, the bank asserted in a statement. The central bank anticipates inflation to hover between 6.0 and 7.0% in 2026, reverting to 4.0% in 2027 should present policies remain steady. The bank had lowered the key rate ten times in succession since June 2025, with the latest cuts of 25 basis points each, reducing the rate from 14.5% to 14.25% in June 2026 and then to the current 14% in July.

Prior to this decision, Russian President Vladimir Putin mentioned in a speech at the Eastern Economic Forum on September 3 that Russia's monetary policy isn't overly restrictive. He warned that excessive money printing is hazardous and the government and central bank are intentionally curbing inflation, which he believes is being accomplished.

In recent weeks, Putin had urged the central bank to reduce its rate on two occasions; other prominent figures, including Sberbank CEO German Gref, echoed this demand, expressing concerns over Russia's economy "overcooling."