Bank of Russia Confirms Cautious Easing as Nabiullina Outlines Inflation–Growth Trade-Off

Overview

• Governor Elvira Nabiullina said the central bank has been easing policy since summer and is proceeding carefully.
• She framed the priority as reducing inflation while guiding the economy from very rapid expansion to a balanced growth pace.
• The key rate has been cut in four steps this year to 16.5%, with moves in June, July, September and a 0.5-point reduction in October.
• The regulator offered no indication of its next steps and maintained a neutral signal on future policy direction.
• Last year the bank raised the rate to a 21% peak over three consecutive hikes in response to high inflation, rapid credit growth and elevated expectations.