MOSCOW, Feb 13 (AFP): Russia's central bank on Friday cut its benchmark interest rate to 15.5 per cent from 16 percent as economic growth slows under the impact of the war in Ukraine and Western sanctions.
Russia's economy expanded by just 1 per cent last year, a steep drop from growth of around 4 percent recorded in 2023 and 2024.
Huge spending on its forces in Ukraine had initially spurred growth and helped Moscow buck predictions of economic collapse after it launched its offensive in 2022.
But the outlays pushed up inflation, while businesses have railed against high borrowing costs.
"The economy continues to return to a balanced growth path," the central bank said in a statement, referring to the cooling economy.
It also said that inflation had "accelerated significantly due to one-off factors" in January, specifically tax hikes.
"Inflation expectations remain elevated. This may impede a sustainable slowdown in inflation," it said.
As a result, the central bank said interest rates would need to stay higher than previously expected, forecasting an average of 13.5-14.5 per cent this year.
Russia cuts interest rate as growth slows
FE Team | Published: February 14, 2026 00:39:38
Russia cuts interest rate as growth slows
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