Bank of Russia Cuts Key Rate to 14%, Warns of Rising Inflation

The Bank of Russia's board cut the key interest rate by 25 basis points to 14.00% per annum, its eighth consecutive cut, while warning that annual inflation had risen to 5.9% by July 20 and could climb to 6-7% by year-end. Policymakers also downgraded 2026 GDP growth projections to 0-1%, citing pressure from Ukrainian drone strikes on refineries and a persistent fuel shortage that pushed gasoline inflation to 19.9%.