The Central Bank has lowered the key interest rate to 18%.

      On July 25, the Russian Central Bank's Board of Directors held a meeting, during which the key interest rate was decreased by 200 basis points to 18% per annum. The regulator announced that current inflationary pressures, including persistent ones, are decreasing faster than previously forecasted. Domestic demand growth is slowing down. The economy continues to return to a trajectory of balanced growth. At the same time, the Bank of Russia stated that it will continue to support the tightness of monetary policy necessary to return inflation to the target by 2026. In the baseline scenario, this implies an average key rate of 18.8–19.6% per year in 2025 and 12–13% per year in 2026. Considering the ongoing monetary policy, it is forecasted that annual inflation will decline to 6–7% in 2025, return to 4% in 2026, and stay on target thereafter. The next meeting of the Board of Directors on the key rate is scheduled for September 12.