Inflation drop prompts Russian Central Bank to cut rates by 50bp to 16%

Investing.com -- The Central Bank of Russia (CBR) cut its key interest rate by 50 basis points to 16.00% on Friday, aligning with most analyst expectations.

Of the 24 analysts surveyed by LSEG, 16 correctly predicted the 50bp reduction, while the remaining analysts had anticipated a larger cut.

Recent economic data supported the central bank’s decision to continue its easing cycle. Russia’s GDP growth slowed to 0.6% year-over-year in the third quarter, while headline inflation fell to 6.6% year-over-year last month, reaching its lowest level in two years.

The central bank is expected to continue monetary easing into 2026, though at a measured pace. This marks another step in Russia’s gradual normalization of monetary policy as inflation pressures show signs of easing.

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