Russia Holds Interest Rate as Expected

2026-10-23 10:34 By Agna Gabriel 1 min. read

The Bank of Russia kept its key interest rate unchanged at 14% in October, in line with market expectations, as inflationary pressures and elevated expectations continued to hinder disinflation.

Ukrainian strikes on Russian energy infrastructure disrupted refinery operations, pushed crude-processing rates to multi-year lows and contributed to fuel shortages, raising gasoline prices and transportation costs across the economy.

Inflation accelerated to an annualized 8% in Q3, from 4.8% in Q2, while core inflation rose to 6.2% from 4.5%.

Annual inflation stood at an estimated 6.8% as of October 19 and is expected to reach 7.1–7.6% by year-end, above the central bank’s earlier forecast.

The central bank said capacity constraints, strong wage growth and persistent inflation expectations pose significant risks, with proinflationary factors outweighing disinflationary ones.

It expects inflation to return to its 4% target in 2027, projecting an average key rate of 12.5–13.5% that year.



News Stream
Russia Holds Interest Rate as Expected
The Bank of Russia kept its key interest rate unchanged at 14% in October, in line with market expectations, as inflationary pressures and elevated expectations continued to hinder disinflation. Ukrainian strikes on Russian energy infrastructure disrupted refinery operations, pushed crude-processing rates to multi-year lows and contributed to fuel shortages, raising gasoline prices and transportation costs across the economy. Inflation accelerated to an annualized 8% in Q3, from 4.8% in Q2, while core inflation rose to 6.2% from 4.5%. Annual inflation stood at an estimated 6.8% as of October 19 and is expected to reach 7.1–7.6% by year-end, above the central bank’s earlier forecast. The central bank said capacity constraints, strong wage growth and persistent inflation expectations pose significant risks, with proinflationary factors outweighing disinflationary ones. It expects inflation to return to its 4% target in 2027, projecting an average key rate of 12.5–13.5% that year.
2026-10-23
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