Friday 12/Sep/2025 – 02:44 PM
Today, Friday, September 12, 2025, the Russian Central Bank reduced interest rates by 100 basis points to 17%, and this decision came amid a slowdown in inflation rates, and increasing pressure from officials and the business sector to avoid the economy slipping into stagnation.
The Russian Central Bank reduces the interest by 100 basis points to 17%
The Russian Central Bank explained that the current price growth indicators did not witness a major change, and that it is still exceeding 4% on an annual basis, noting that the economy continues its return to a balanced path, and that the pace of credit growth has accelerated in recent months, but the inflation expectations are still high.
The bank affirmed its intention to maintain a strict monetary policy to the extent necessary to re -inflation to its 4% target by 2026, adding that its future decisions on interest rates will depend on the extent of sustainability of the slowdown and the development of its expectations.
The Russian Central expected that the annual inflation in the country would decrease between 6% and 7% in 2025, and return to 4% in 2026, to settle at this target level after that.
This decision was compatible with market expectations that were expecting a major interest rate of 1% and 2%.
Official data showed that price contraction in Russia was on a monthly basis last August by 0.4%, while the annual inflation rate was estimated on September 8 by 8.1%.
It is noteworthy that the Russian Central Bank had reduced the main interest rate last July by 2% from 20% to 18% annually, and a month ago, it had reduced it by 1% to 20% annually.
