The Central Bank of Russia announced a reduction of the key interest rate to 17%.

      12 September 2025 14:13

      [156]

      Economy: The Central Bank of Russia announced a reduction of the key rate to 17%. This decision was made by the Bank's Board of Directors at a meeting on 12 September.

      TV channel "360" cites the regulator's statement saying that the country's economy is returning to sustainable growth; however, inflationary expectations remain high and lending is developing actively.

      According to the Bank of Russia's forecasts, inflation in 2025 will fall to 6–7%, and by 2026 it will return to the target level of 4%. This indicates the regulator's intent to stabilize the economy and ensure long-term economic growth.

      The reduction of the key rate may contribute to lower borrowing costs for businesses and the population, which, in turn, may stimulate economic activity and investment. However, it is important to consider that the success of these measures depends on many factors, including the overall economic situation and the measures taken by the government and businesses.

      Recall that this is already the third reduction of the key rate this year: in winter it stood at 21%. And only on 6 June the Bank of Russia's Board of Directors decided to cut the key rate by 100 basis points to 20.00%. The decline was recorded for the first time in almost three years.

      Russian President Vladimir Putin previously explained that a sharp reduction in the interest rate can lead to a rapid rise in prices. Therefore, the Central Bank prefers to act gradually to avoid negative consequences for the economy.

      NIA "Nizhny Novgorod" has a Telegram channel. Subscribe to stay informed about major events, exclusive material, and timely information. Copyright © 1999—2025 NIA "Nizhny Novgorod". When reprinting, a hyperlink to NIA "Nizhny Novgorod" is mandatory. This resource may contain 18+ materials.