The Central Bank of Russia has lowered its key interest rate by 100 basis points to 20.00% per annum, effective June 6, 2025. This decision was made during a meeting of the Board of Directors.

The regulator notes a decrease in current inflationary pressure, despite domestic demand still exceeding the supply of goods and services. The Russian economy is reportedly moving towards balanced growth.

The Central Bank forecasts that the key rate will range from 19.5–21.5% in 2025 and is expected to decrease to 13–14% in 2026.

Inflation is projected to fall to 7–8% this year and return to the targeted 4% next year.

The key rate had remained at a record high of 21% since October 2024. For seven months, the regulator maintained this rate, awaiting a slowdown in inflation and improvements in the economic climate to allow for a gradual decrease.

Earlier in May, Anton Siluanov, head of the Russian Ministry of Finance, suggested the possibility of the Central Bank easing monetary policy in June, citing a slowdown in both corporate and consumer lending.