Russia's Central Bank slashes key rate to 14.5%

Prefer on Google by Martin Fornusek Russia's Central Bank Governor Elvira Nabiullina attends the Saint Petersburg International Economic Forum (SPIEF) in Saint Petersburg on June 19, 2025. (Olga Maltseva/AFP via Getty Images) The Central Bank of Russia on April 24 cut its benchmark rate by 50 basis points to 14.5%, offering relief to the Russian economy while warning of continued uncertainty. The move marks the eighth consecutive rate cut from record highs previously imposed to curb inflation driven by wartime spending amid the invasion of Ukraine. Russia 's inflation rate slowed from 5.9% in March to 5.7% as of April 20, with the central bank forecasting a decline to the annual rate of 4.5–5.5% in 2026. The regulator expects the benchmark rate to remain between 14% and 14.5% per annum this year and between 8% and 10% in 2027. The Russian economy slowed in early 2026, partly due to adjustments to earlier tax changes and one-off factors. Nevertheless, the central bank has kept this year's GDP growth forecast at 0.5-1.5%. "Domestic demand dynamics have roughly corresponded to the economy's capacity to ramp up the supply of goods and services. However, measures of underlying price growth have not yet decreased," the regulator said in a press release. "There is still significant uncertainty regarding the external environment and fiscal policy parameters." Russia's economy has faced significant headwinds at the start of the year, including mounting budget pressure and falling oil prices. Energy prices later spiked amid the U.S.-Iran war and the closure of the Strait of Hormuz, allowing Russia to reap windfall profits while benefiting from a loosening of U.S. sanctions.