The Central Bank announced on the 6th (local time) that it lowered the benchmark interest rate from 21% to 20%. This marks the first reduction in Russia's benchmark interest rate since September 2022. After raising the rate to 21% in October last year, the Central Bank froze it for four consecutive times.
The Russian benchmark interest rate, which was 20%, fell to 7.5% until September 2022 and remained at that level until June 2023. However, due to inflationary pressures, the benchmark interest rate soared back to 21%.
The Central Bank noted that "current inflation pressures are continuing to decrease" and that "the Russian economy is gradually returning to a balanced growth path." It also stated that it will maintain a tight currency policy to reduce the annual inflation target to 4% by 2026.