Overview

• Russia's central bank cut its key interest rate to 20% from a two-decade high of 21%, ending a series of hikes that began in July 2023.
• This is the first rate reduction since September 2022, reflecting officials’ view that rapid price rises are coming under control.
• Inflation remains above 10% but officials note that price pressures have been steadily declining.
• The bank said monetary policy will remain restrictive for an extended period as it aims to bring inflation down to its 4% target by next year.
• The rate decision comes against a backdrop of Western sanctions and elevated military spending tied to the Ukraine conflict.