The Bank of Russia predicts the continuation of the monetary policy easing cycle until the end of 2026

The period of reduction of the key rate by the Bank of Russia will last throughout the next year. This was stated by Chairman of the Central Bank of the Russian Federation Elvira Nabiullina during a speech in the State Duma. According to her, all the regulator's decisions in the field of interest rate policy are aimed at completing the high inflation phase as quickly as possible, while preventing excessive cooling of economic activity. "Since June, we have entered a key rate reduction cycle. Over the past four months, we have reduced it by 4.5 percentage points. According to our forecast, this mitigation cycle will affect and fully cover next year," Nabiullina said. The next step in this direction was the decision of the Board of Directors of the Bank of Russia at a meeting on October 24, during which the rate was reduced from 17% to 16.5%. Thus, the regulator has been easing monetary policy for the fourth time in a row.