Board of Directors of the Bank of Russia decided to reduce the key rate by 100 B.P., to 20.00% per annum. The regulator’s press service reports on Friday, June 6th.
“The current inflationary pressure, including sustainable, continues to decline. despite the fact that internal demand is still ahead of the possibility of expanding the supply of goods and services, the Russian economy is gradually returning to the path of balanced growth,” follows the message.
The regulator noted the intention to maintain such rigidity of monetary conditions that is necessary to return inflation to the target in 2026. “This means a long period of a strict monetary policy. Further decisions at the key rate will be made depending on the speed and stability of reducing inflation and inflation expectations. According to the forecast of the Bank of Russia, taking into account the conducted monetary policy, the annual inflation will return to 4.0% in 2026 and will be in the future,” the Central Bank said in a statement by the Central Bank of the Central Bank RF.
The bank noted that the growth of salaries remains high and continues to be ahead of the growth of labor productivity;
Unemployment is on historical minimums, but the share of enterprises with a shortage of personnel continues to decline, it follows from the message. The regulator noted that annual inflation in Russia, according to June 2, slowed down to 9.8%.
The Central Bank of the Russian Federation will maintain the rigidity of the monetary conditions necessary for the return of inflation to the target in 2026, follows from the publication. The regulator also pointed out the need for a long period of a rigid monetary policy;
Operational data indicates a gradual slowdown in the growth of internal demand in the economy of the Russian Federation, the bank said, adding that inflationary expectations of Russians remain at an increased level, which may impede a more sustainable slowdown in inflation.
The next meeting of the Board of Directors of the Bank of Russia, which will consider the issue of the key rate, is scheduled for July 25, 2025. The time of publication of a press release on the decision of the Board of Directors of the Bank of Russia and the medium -term forecast – 13:30 Moscow time.