Russia

Russia's Central Bank holds key rate for the first time since mid-2025

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Russia's Central Bank holds key rate for the first time since mid-2025
A view of the Russian Central Bank headquarters in Moscow, Russia on Sept. 12, 2025. (Olesya Kurpyayeva / AFP via Getty Images)

The Russian Central Bank's board of directors on Sept. 11 decided to keep the key rate at 14%, the first time the regulator has opted not to cut it since mid-June 2025.

The central bank decided against further rate cuts due to heightened inflation risks, as Russia has been grappling with fuel shortages and price surges caused by Ukrainian drone strikes.

According to the central bank, Russia's economy is "growing at a moderate pace" in the third quarter of 2026, with investment continuing to recover from its earlier-year levels.

It expects inflation to come in at 6-7% in 2026 and drop to 4% the following year.

The central bank has faced pressure from Russian businesses to continue slashing the key rate, with some arguing that borrowing costs would remain too high until the rate falls to 10%-12%.

The latest assessment comes a week before the Russian legislative elections, which are tightly controlled by the Kremlin but help the regime gauge public sentiment amid Moscow's ongoing war in Ukraine.

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Martin Fornusek

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Martin Fornusek is a reporter for the Kyiv Independent, specializing in international and regional politics, history, and disinformation. Based in Lviv, Martin often reports on international politics, with a focus on analyzing developments related to Ukraine and Russia. His career in journalism began in 2021 after graduating from Masaryk University in Brno, Czechia, earning a Master's degree in Conflict and Democracy Studies. Martin has been invited to speak on Times Radio, France 24, Czech Television, and Radio Free Europe. He speaks English, Czech, and Ukrainian.

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