ArmInfo. The Bank of Russia's Board of Directors has decided to lower the key rate for the sixth time in a row. The increment was again 50 basis points, lowering the rate to 15.5% per annum.
Most analysts expected the rate to remain at 16%. Some experts expected a 50 bp reduction.
"The economy continues to return to a balanced growth trajectory. In January, price growth accelerated significantly due to one-off factors. At the same time, the Bank of Russia estimates that the sustainable indicators of current price growth have not changed significantly. After the impact of one-off factors has subsided, inflation will resume its decline," stated a press release following the Central Bank's Board of Directors meeting on Friday.
The Central Bank will assess the advisability of further key rate reduction at upcoming meetings depending on the sustainability of the inflation slowdown and the dynamics of inflation expectations, the regulator noted in a statement.
At the previous meeting, on December 19, 2025, the rate was cut by 50 bps to 16% per annum. Before that, on October 24, there was also a 50 bps reduction. In September, a decision was made to cut the rate more significantly – by 100 bps. Before that, on July 25, the Bank of Russia's Board of Directors decided to cut it by 200 bps, to 18% per annum from 20%. For the first time in more than 2.5 years, the decision to cut the rate (by 100 bps, from 21% per annum) was made on June 6.
Before June, the Central Bank kept the rate at 21% per annum for four consecutive meetings after raising it by 200 basis points from 19% on October 25, 2024. At the meeting on December 20, 2024, the decision was made to keep the rate at this level, although most analysts expected it to increase. The rate remained unchanged on February 14, March 21, and April 25, 2025.
The next meeting of the Central Bank's Board of Directors to discuss the rate will be held on March 20. (INTERFAX)
