Central Bank of Russia reduced a key interest rate by 1 percent

On June 6, the Central Bank of Russia announced a reduction in the key rate on loans from 21% to 20%.

According to the institution, current inflation pressure continues to decline:

“At the same time, internal demand is still ahead of the possibility of expanding the supply of goods and services, the Russian economy is gradually returning to the trajectory of balanced growth.”

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Since July 2023 The key interest rate in Russia increased from 7.5 to 21%. At this level, it remained since October 2024.

The head of the Central Bank Elvira Nabiullin said that if the inflation stops declining and it will increase, the new increase in the key rate is not excluded.

Nabiullin regularly undergone a sharp criticism by representatives of large Russian business, which demanded that it weaken the rigid credit policy of the central bank, as it threatens stagflation and rising federal budget expenditures. The head of the institution explained the refusal to reduce the key rate by the threat of high inflation in Russia.