Summary of the Key Rate Discussion released
The publication covers the main aspects of the discussion about the economic situation and inflation, monetary and external conditions, and alternatives to the key rate decision.
According to the participants in the discussion, there is now more confidence that the economy has been gradually returning to a balanced growth path. This process is primarily facilitated by tight monetary policy, which moderates the expansion in domestic demand and alleviates inflationary pressures. Inflation has been decelerating faster than forecast by the Bank of Russia. In June 2025, current price growth rates were close to 4% in annualised terms.
Following the discussion, the Board of Directors decided to cut the key rate by 200 bp to 18.00% per annum. Further key rate decisions will depend on the sustainability of the decrease in inflation and inflation expectations.
According to the Bank of Russia’s forecast, given the monetary policy stance, annual inflation will decline to
More details on the economic developments are available in the Commentary on the Bank of Russia’s Medium-term Forecast.