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Russia Cuts Rate to 14.25%, Inflation Risks Rise

6/20/2026

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Story summary
  • On June 19 2026, Russia’s Central Bank cut its key rate to 14.25% from 14.5%.
  • The bank warned that soft budget policy, lower fuel output and Ukrainian drone attacks raise inflation risks, noting inflation was 5.6% on June 15 2026 and the deficit hit 2.6% of GDP, above the 1.6% goal.
  • Russian stocks fell and the MOEX slipped over 1.6% after the cut, while Governor Elvira Nabiullina returned after a three-week flu absence.