Russia holds key rate at two-decade high despite slowdown fears

Russia’s CBR keeps key interest rate at 21%

The board of the Central Bank of Russia (CBR) resolved to keep the key interest rate unchanged at 21% at the policy meeting of April 25, according to the press-release of the regulator.

Russia holds key rate at two-decade high despite slowdown fears

Russia's central bank kept borrowing costs at a two-decade high of 21 percent on Friday to combat rampant inflation, despite banks and businesses warning the economy was headed for a slowdown.

Russian Central Bank Holds Key Rate Despite Fears of Economic Slowdown

Russia’s Central Bank held its key interest rate at 21% on Friday, maintaining borrowing costs at a historic high despite mounting concerns from businesses and banks that the economy is slowing.

The Central Bank of Russia announced on Friday, April 25, that it is keeping the key interest rate unchanged at a record level of 21%, where it has been for half a year, since October 2024. It is the fourth consecutive decision of this kind, and the monetary authority warns that there is no interest rate cut in sight in the near future. In its updated forecast, the bank narrowed the estimated range for the average rate in 2025 to 19.5–21.5%, fro…

“Future decisions on interest rates will be taken taking into account the speed and stability of the decline in inflation, as well as expectations,” the BCR said in a statement. According to the central bank, no substantial changes in credit policy are expected until inflation falls to 4%. In addition, the BCR said that it plans to keep interest rates in a range between 19.5% and 21.5% for 2025, while for 2026 a drop to 13% or 14% is expected.

Russia Holds Key Rate At Two-decade High Despite Slowdown Fears

Russia's central bank kept borrowing costs at a two-decade high of 21 percent on Friday to combat rampant inflation, despite banks and businesses warning the economy was headed for a slowdown.