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Russia Cuts Interest Rate Amid VAT Hike Challenges

12/20/2025

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Summary

Story summary

On December 19, 2025, Russia's Central Bank reduced its key rate from 16.5% to 16%, down from 21% peak fourteen months earlier.
Elvira Nabiullina, governor of Russia's Central Bank, aims to support the economy even as the January 1 Value Added Tax (VAT) hike raises the rate from 20% to 22% and hits many small businesses.
Ukraine's National Bank keeps its rate at 15.5%, prioritizing currency stability amid lower inflation.

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Story summary

On December 19, 2025, Russia's Central Bank reduced its key rate from 16.5% to 16%, down from 21% peak fourteen months earlier.
Elvira Nabiullina, governor of Russia's Central Bank, aims to support the economy even as the January 1 Value Added Tax (VAT) hike raises the rate from 20% to 22% and hits many small businesses.
Ukraine's National Bank keeps its rate at 15.5%, prioritizing currency stability amid lower inflation.