Russian Central Bank Cuts Interest Rate Amid Inflation Control Efforts

(MENAFN) The Bank of Russia announced on Friday that it would reduce its benchmark interest rate by 50 basis points, bringing it down to 16%. The institution explained that the nation’s economy is steadily progressing toward a more stable and balanced growth trajectory.

This adjustment aligned with analysts’ and market participants’ expectations for the current meeting. The rate now sits at its lowest level in 17 months, marking the fifth successive reduction.

"Underlying measures of current price growth declined in November," the monetary authority declared in its statement, while also noting that inflationary expectations have risen slightly in recent months.

The bank emphasized that it intends to preserve financial conditions "as tight as required" to ensure inflation returns to its target level.

Based on its projections, the central institution anticipates that overall inflation will ease to between 4% and 5% in 2026, with core inflation reaching 4% during the latter half of that year.

"In 2027 and beyond, annual inflation will stay on target," the statement concluded.

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