Russia's Central Bank Lowers Benchmark Interest Rate to 14.5%
On April 24, the Russian Central Bank's Board of Directors once again reduced the benchmark interest rate, marking the eighth consecutive rate cut. This round of reduction amounted to 50 basis points, bringing the annualized benchmark rate down to 14.5%.
The vast majority of analysts had previously forecasted a 50-basis-point cut, with only a small number of economists anticipating a single 100-basis-point reduction by the central bank.
The central bank's press release from the Board meeting stated that domestic demand growth has now matched the expansion capacity of goods and services supply. However, core inflation indicators remain stubbornly high, and the central bank assesses that annualized core inflation continues to stay within the 4%-5% range. Meanwhile, external economic conditions and key fiscal policy parameters still carry significant uncertainty.
The central bank emphasized that future decisions on further rate cuts will be based on three key factors: the sustainability of inflation decline, trends in market inflation expectations, and assessments of various internal and external risks.
At the previous meeting on March 20, the rate was lowered by 50 basis points to 15%; identical 50-basis-point cuts were also implemented on February 13, December 19, 2025, and October 24. In September 2025, the cut was more substantial—100 basis points—while prior to that, on July 25, the central bank made a one-time reduction of 200 basis points, lowering the rate from 20% to 18%.
On June 6, 2025, the central bank made its first rate cut in over two and a half years, reducing the rate by 100 basis points, starting from 21%.
On October 25, 2024, the central bank raised rates by 200 basis points, increasing the rate from 19% to 21%, after which it maintained this level unchanged across four consecutive meetings.
At the December 20, 2024 meeting, the central bank resisted market expectations for a rate hike and kept rates unchanged; similarly, the benchmark rate remained unchanged on February 14, March 21, and April 25, 2025.
The next scheduled monetary policy decision meeting by the Russian Central Bank Board: June 19, 2026.
Original article: toutiao.com/article/1863359938231324/
Disclaimer: The views expressed in this article are those of the author alone.