Central Bank of Russia Holds Interest Rate at 14%

The Central Bank of Russia maintained its key interest rate at 14% during its meeting on October 23, 2026. Policymakers balanced persistent inflation risks against the need to lower borrowing costs for consumers and businesses as the Kremlin continues heavy spending on the war against Ukraine.

Annual inflation reached 6.8% earlier in the week, leading the bank to increase its full-year inflation forecast to a range between 7.1% and 7.6%. The bank attributed these price increases to global energy market volatility linked to a war in Iran and temporary production capacity reductions caused by Ukrainian strikes on oil refineries.

Despite the inflation outlook, the bank raised its GDP growth forecast for the end of 2026 to between 0.5% and 1%. Additionally, the bank increased its projected key rate range for next year to between 12.5% and 13.5%.