The Bank of Russia has revised its average key interest rate forecast for the coming years, projecting a return to 7.5 to 8.5 percent in 2029.
According to materials published by the regulator, the average key rate will range between 14.5 and 14.6 percent in 2026. The rate is expected to drop to between 10.5 and 12.5 percent in 2027, and between 8 and 9 percent in 2028.
The central bank's previous forecast from April had set expectations at 14 to 14.5 percent for 2026, 8.0 to 10 percent for 2027, and 7.5 to 8.5 percent for 2028. The Bank of Russia clarified that returning the key rate to the annual range of 7.5 to 8.5 percent is now projected for 2029.
Recent Rate Decisions
Following a board of directors meeting on July 24, the regulator reduced the key rate by 0.25 percentage points to 14 percent. A forecast released at the end of July indicated the regulator will lower the key rate by 0.25 percentage points two more times in 2026 and leave it unchanged once, bringing the rate to 13.5 percent by December.
