Bank of Russia Holds Key Rate at 14% Amid Persistent Inflation Pressures

On October 23, 2026, the Bank of Russia kept its key interest rate unchanged at 14 % per annum.

Russian central bank holds key rate steady at 14%

Russia’s war effort in Ukraine continues to strain the federal budget, prompting the Kremlin to prioritize defense spending while seeking to contain borrowing costs for businesses and consumers. At the same time, Ukrainian drone and missile strikes on oil refineries have pushed gasoline and diesel prices higher, adding a temporary upward pressure on domestic inflation. The central bank also noted that broader geopolitical tensions, including the war in Iran, could affect global energy markets and feed into Russia’s price dynamics.

Moscow TimesTurkish central bank cuts interest rates amid easing inflation Russian central bank holds key rate steady at 14% Bloomberg

• Current inflation: Annual consumer-price inflation was reported at 6.8 %.

Moscow Times

• Underlying price growth: The bank estimated underlying inflation at 5 %–6 % annualized, describing it as “not yet decreased.”

Russian central bank holds key rate steady at 14%

• Quarterly price trends: Seasonally adjusted price growth averaged 8 % annualized in the third quarter of 2026, up sharply from 4.8 % in the second quarter. Core inflation rose to 6.2 % from 4.5 % over the same period, driven in part by volatile motor-fuel prices.

Russian central bank holds key rate steady at 14%

• Full-year inflation outlook: The Bank of Russia raised its full-year inflation forecast to a range of 7.1 %–7.6 %.

Russian central bank holds key rate steady at 14%

• Future rate projection: The projected key-rate range for 2027 was increased by two percentage points to 12.5 %–13.5 %.

Russian central bank holds key rate steady at 14%

• Inflation target: Officials reiterated the expectation that price growth will move toward the 4 % target in the next calendar year.

Bloomberg

Despite a moderate pace of economic growth in the second half of 2026, the central bank warned that continued high inflation expectations could impede the disinflation process.

Russian central bank holds key rate steady at 14%

Both source outlets present a consistent set of figures for current inflation (6.8 %), the full-year forecast (7.1 %–7.6 %), and the projected 2027 rate range (12.5 %–13.5 %). No contradictory statistics were identified. However, the sources do not provide detailed sector-specific data on the “temporary reduction in production capacities,” leaving a gap in understanding which industries are most affected and how long the capacity constraints may persist.

Russian central bank holds key rate steady at 14%