Russia's Central Bank is proving the effectiveness of its anti-inflation measures, with price growth showing a marked slowdown in June. Bloomberg reported this assessment in an article examining Russia's economic progress.
The outlet noted that while annual inflation remains at 9% — significantly above the 4% target — current monthly price increases have aligned with the central bank's desired trajectory.
This development suggests the Bank of Russia may implement further reductions to its key interest rate, with cuts likely coming sooner and being more substantial than previously anticipated, Bloomberg reported.
On June 6, the Central Bank made its first rate cut in months, lowering the key rate by 100 basis points to 20% after maintaining it at 21% for an extended period. The next meeting of the Bank of Russia's board of directors to consider the key rate level is scheduled for July 25.
The central bank's baseline forecast projects the average annual key rate at 13-14% in 2026, declining further to 7.5-8.5% in 2027.
GSV "Russia - Islamic world"
Photo: Moscow-Live/Creative Commons 2.0
Based on materials from TASS