Russian Federation Interest Rate

The Bank of Russia kept its key interest rate unchanged at a record high of 21% on April 25th 2025, aligning with market expectations. The central bank noted that although inflationary pressures, including core inflation, are gradually easing, they remain elevated. It also cautioned that a further slowdown in global economic growth and a drop in oil prices, especially amid rising trade tensions, could add inflationary pressure through the ruble's exchange rate dynamics. Meanwhile, the central bank expects inflation to slow to 7.0–8.0% in 2025 and return to 4.0% by 2026. In March, Russia’s annual inflation rate rose to 10.3%. The central bank left its 2025 economic growth forecast unchanged at 1%–2% and reaffirmed that monetary policy will remain tight for an extended period to ensure inflation returns to target.