Published by Global Banking & Finance Review®
Posted on June 30, 2025
1 min readLast updated: January 23, 2026
The Russian central bank may cut its key rate by more than 1% in July if inflation data supports a slowdown to 4% by 2026, says Deputy Governor Zabotkin.
ST. PETERSBURG, Russia (Reuters) -The Russian central bank's board may consider an interest rate cut of more than 1 percentage point at its meeting on July 25 if data confirms that inflation is on track to slow to 4% in 2026, Deputy Governor Alexei Zabotkin said on Monday.
"If the data received by that time on the economy, the labour market, credit activity, actual inflation, and inflation expectations indicate that a slowdown in inflation to 4% is consistent with a more significant step, then this option will also be considered," Zabotkin told reporters.
At its last board meeting on June 6, the regulator cut its key interest rate by a full percentage point to 20%. Zabotkin said the cut at the upcoming meeting could be "more significant than at the meeting in June".
The central bank expects inflation to slow down to 7% to 8% in 2025 from 9.5% in 2024 and hit the target of 4% in 2026.
(Reporting by Elena Fabrichnaya; Writing by Gleb Bryanski; Editing by Alison Williams)
The Russian central bank's board may consider an interest rate cut of more than 1 percentage point at its meeting on July 25.
The decision will depend on data regarding the economy, labor market, credit activity, actual inflation, and inflation expectations.
After the last board meeting on June 6, the central bank cut its key interest rate to 20%.
The central bank expects inflation to slow down to 7% to 8% in 2025 from 9.5% in 2024.
The central bank aims to hit its inflation target of 4% by 2026.
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