The Bank of Russia has lowered its key interest rate for the fourth consecutive time this year, saying the economy is stabilizing even as inflation expectations remain elevated.
Announcing a 50-basis-point cut to 16.5% on Friday, the central bank pledged to keep monetary policy tight enough to return inflation to its 4% target, from an estimated 6.5-7% for 2025.
”The current inflationary pressures will temporarily increase in late 2025 and early 2026 because of a number of factors, including price adjustments and the reaction of inflation expectations to the upcoming VAT rise,” the bank said. The government earlier proposed raising value-added…
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