Central Bank of Russia cuts key rate by 50 bps to 14.5% per annum

MOSCOW. April 24 (Interfax) - The board of directors of the Central Bank of Russia has continued to cut the key rate.

It was again cut by 50 basis points (bps), with the rate reduced to 14.5% per annum.

The vast majority of analysts expected a rate cut of 50 bps. Only a small portion of economists believed that the Central Bank would cut the rate by 100 bps in one go.

"Domestic demand dynamics have roughly corresponded to the economy's capacity to ramp up supply of goods and services. However, measures of underlying price growth have not yet decreased and remain in the range of 4%-5% in annualised terms, as estimated by the Bank of Russia. There is still significant uncertainty regarding the external environment and fiscal policy parameters," the CBR said in a press release issued following the meeting of its board of directors on Friday.

The CBR will assess the appropriateness of further key rate cuts at upcoming meetings depending on the sustainability of the slowdown in inflation, the dynamics of inflation expectations and on the assessment of risks from external and internal conditions, it said.

At the previous meeting, on March 20, the rate was also cut by 50 bps to 15% per annum. The same step was taken on February 13, as well as on December 19 and October 24, 2025. In September last year, a decision was made on a more significant rate cut of 100 bps. Prior to that, on July 25, the board of directors decided to cut it by 200 bps, to 18% per annum from 20% per annum.

Earlier, for the first time in more than two and a half years, a decision to cut the rate (by 100 bps from 21% per annum) was made on June 6 last year.

Until June, the Central Bank had kept the rate at 21% per annum for four consecutive meetings after it was raised on October 25, 2024 by 200 bps from 19%.

At the meeting on December 20, 2024, a decision was made to keep the rate at this level, although most analysts expected it to be raised. On February 14, March 21 and April 25, 2025, the rate remained at the same level.

The next meeting of the Central Bank's board of directors on the rate will take place on June 19.