Inflationary pressures continue to decline, and the Russian central bank unexpectedly cut interest rates by 100 basis points

ChainCatcher news, according to Jinshi reports, the Central Bank of Russia unexpectedly lowered the key interest rate by 100 basis points to 20.00%, while the market expected it to remain unchanged at 21%. The statement shows that current inflation pressures, including potential inflation pressures, continue to decline. Although domestic demand growth still exceeds the capacity for expansion of goods and services supply, the Russian economy is gradually returning to a path of balanced growth.

The Central Bank of Russia will maintain monetary tightening as much as possible in order to restore inflation to target levels by 2026. This means that monetary policy will remain tight for an extended period. Further decisions regarding the key interest rate will depend on the speed and sustainability of the decline in inflation and inflation expectations. According to the Central Bank of Russia's forecasts, considering the monetary policy stance, inflation will return to 4.0% by 2026 and will further remain at the target level.