Russia's central bank keeps benchmark interest rate at 14%
The Russian central bank maintained its key rate at 14% ahead of an upcoming parliamentary election, while businesses argued rates should fall below 12% to stimulate growth.
The central bank of Russia held its benchmark interest rate at 14 percent on Friday. This decision came one week before a parliamentary election that officials expect to gauge public sentiment following more than four years of conflict in Ukraine. The economy, valued at roughly $2.6 trillion last year, is projected to grow slightly above zero in 2026 due to the high borrowing costs, Western sanctions, and attacks on economic infrastructure. Inflation rose in June after drone strikes caused fuel shortages and higher transport expenses.
Businesses have urged the bank to lower rates below 12 percent to encourage investment. The central bank stated that price pressures increased significantly recently and that the economy is growing at a moderate pace in the third quarter of 2026. Despite the pressure, officials noted that investment is recovering compared to the start of the year.
This rate remains the highest among major BRICS economies. Leaders from Russia and Brazil are set to meet with counterparts in New Delhi this weekend.
