Bank of Russia Cuts Key Interest Rate Amid Inflation Deceleration and Economic Softening

Chas Pravdy - 25 July 2025 15:28

Amid signs of slowing inflation and a decelerating economy, the Central Bank of Russia has decided to reduce its key interest rate.
The new rate stands at 18%, marking the lowest level in the past year — since late July 2024.
This decision is driven by observable trends of decreasing inflationary pressure, which have been more rapid than previously anticipated.
The regulator has also revised its inflation forecast for 2024 downward, from 7-8% to 6-7%, signaling a move toward stabilization of prices.
The Central Bank’s official stance indicates that lowering the rate will help moderate the overheating economy, a positive factor for sustainable growth.
Experts note that this measure is unlikely to negatively impact domestic demand, as the economy continues to show signs of gradual slowdown in growth, which the regulator considers a normal response to reducing excess activity.
It is also noteworthy that the National Bank of Ukraine recently maintained its interest rate at 15.5%, citing a slowdown in inflation in June and controlled inflation expectations, reflecting a shared trend toward price stability across the region.

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