The Bank of Russia continued its policy of easing monetary policy and lowered its key rate to 16% from December 22, 2025. Thus, the indicator was reduced by 0.5 percentage points compared to the level of 16.5% set in October this year. The regulator's decision reflects an assessment of the stability of inflationary processes and the dynamics of economic activity.
According to the Bank of Russia, annual inflation as of December 15, 2025 was 5.8%. The regulator expects that by the end of 2025, consumer price growth will be below 6%, and by the end of 2026, inflation will slow down to the target level of 4%. In 2027 and beyond, according to the baseline forecast, inflation will remain stable near this benchmark.
The Central Bank of the Russian Federation emphasizes that further decisions on the rate will be made taking into account the need to maintain sufficient rigidity of monetary conditions. In an official comment, the regulator noted that it will maintain a level of restrictions that will ensure that inflation returns to the target value and consolidate this result in the medium term.
Lowering the key interest rate is an important signal for financial markets, the banking sector and the real economy. For businesses, this may mean a gradual reduction in the cost of borrowed resources, and for the public, a potential reduction in loan rates. At the same time, the regulator maintains a cautious approach, pointing out the need to take into account inflationary expectations and the risks of a renewed acceleration in price growth.
The next meeting of the Board of Directors of the Bank of Russia on the key interest rate is scheduled for February 13, 2026. According to the Central Bank of the Russian Federation, the decision will be made based on the sustainability of the slowdown in inflation, as well as the current dynamics of inflation expectations from businesses and the public. This means that further policy easing is not automatic and will depend on macroeconomic indicators at the beginning of 2026.
Experts note that the regulator's actions demonstrate a desire to balance support for economic activity and control over inflation, while maintaining confidence in monetary policy in a changing macroeconomic environment.
