The Bank of Russia announced that it will carefully and gradually reduce the reference interest rate in 2026, and inflation is expected to fall to 4-5 percent by the end of the year.
“We started to lower the reference interest rate — from June to December, it fell by five percentage points, to 16 percent per year. The reduction of the rate has been determined, but it will be done carefully and gradually, as the balance between growing demand and the production capacity of the economy is restored. A sustainable slowdown in inflation will allow us to gradually lower the reference interest rate to neutral levels,” the Bank of Russia said in a statement on Telegram, reports TASS.
According to the bank’s forecasts, inflation in Russia will fall to 4-5 percent by the end of 2026, and then stabilize close to the target, which is currently set at 4 percent, reports Tanjug.rs.
