On Friday, the Central Bank of Russia lowered the key rate to 14.25…
On Friday, the Central Bank of Russia lowered the key rate to 14.25 percent. At the June 19 meeting, the Bank of Russia decided to reduce the key rate.
Consensus
- The Central Bank of Russia lowered the key interest rate to 14.25% on June 19.
- This was the ninth consecutive rate cut as part of a monetary easing policy.
- The rate was reduced from 14.5% to 14.25%.
- The decision followed a meeting of the CBR's board.
- Inflation risks remain, and the bank noted a more stimulative fiscal policy than expected.
Points of divergence
- The ruble strengthened as a result of the rate cut. — gazeta_spb
- Most analysts expected a 50 basis point cut, but the CBR chose a 25 basis point cut. — fontanka
- The CBR's president, Elvira Nabiyullina, stated that the current step is insufficient for major monetary easing. — gazeta_spb
- The CBR's press release explained that the more cautious approach was due to budgetary policy and inflation risks. — fontanka
- Analysts had predicted the rate cut based on declining inflation, a stronger ruble, and geopolitical factors. — gazeta_spb
- The CBR noted that economic activity has improved since Q1 2026, with rising consumer demand and credit growth. — fontanka
Coverage (2 sources)
- On Friday at the Central Bank meeting the key rate was reduced to 14.25% - St. Petersburg Newspaper - News from St. Petersburg — Gazeta.SPb
- Central Bank Lowers Key Rate for the Ninth Consecutive Time — Фонтанка