Bank of Russia Cuts Key Rate to 14.5% as Economy Slows

The Bank of Russia Board of Directors cut the key interest rate by 50 basis points to 14.50% per annum on April 24 — the eighth consecutive reduction since the central bank began its easing cycle after holding rates at a two-decade high of 21%. Annual inflation had fallen to 5.7% as of April 20, providing room to ease. The Central Bank noted the Russian economy contracted 0.3% in Q1 2026 — its first contraction since early 2023 — citing subdued consumer demand, investment activity, and unfavorable weather. The Bank maintained its 2026 GDP forecast at 0.5–1.5% growth, with inflation projected to reach the 4% target by 2027.