Bank of Russia Keeps Key Interest Rate Unchanged at 14 Percent

Dragon Media News Desk

The Bank of Russia has decided to keep its key interest rate unchanged at 14 percent.

The central bank said future decisions on the key rate would depend on inflation dynamics and changes in inflation expectations.

According to the bank, underlying price growth has accelerated to an annualised rate of 5 to 6 percent. Annual inflation is expected to remain between 6 and 7 percent in 2026 before returning to the 4 percent target in 2027 and staying around that level thereafter.

Preliminary data indicate that the Russian economy is growing at a moderate pace in the third quarter of 2026.

Inflation expectations among households, businesses and financial market participants have moved in different directions but remain elevated overall, the central bank said.

Pressure in the labour market is gradually easing, while surveys indicate that labour shortages are continuing to decline.

Credit activity has remained strong in recent months, driven primarily by the corporate sector.

The Bank of Russia also said investment activity continues to recover compared with levels seen at the beginning of the year.

In real terms, monetary and credit conditions have become somewhat less restrictive, taking into account changes in expectations for future inflation.