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2025-10-28 17:14:18
[The Russian Central Bank releases a strong signal: there is huge room for interest rate cuts next year] ⑴ Elvira Nabiullina, Governor of the Russian Central Bank, said on Tuesday that as inflation gradually returns to the target level of 4%, there is significant room for key interest rates to be lowered next year. ⑵ The central bank has started a cycle of interest rate cuts since raising interest rates to 21% last year. It just lowered it by 50 basis points to 16.5% last Friday, and made it clear that the interest rate cut cycle will cover the entire 2026. ⑶ The latest forecast shows that the price growth rate will fall back to the target range in the second half of 2026, but inflation expectations for the same period will still stubbornly remain at the high level of 2024. ⑷ The central bank raised the expected range of average interest rates for 2026 to 13%-15%, and at the same time raised the inflation forecast for 2026 from 4% to 4%-5%, reflecting that policy adjustments will maintain a gradual pace. ⑸ Although companies generally call for interest rates to be lowered to 12%-14% to promote investment, the central bank emphasizes that premature easing of policies will undermine economic stability
