Russia’s central bank holds key rate at 14% amid inflation concerns

Russia’s central bank maintained its key interest rate at 14% on Friday, marking the second consecutive hold in under two months as inflation pressures persist in the economy.

The Bank of Russia revised its inflation forecast upward for 2026 to a range of 7.1% to 7.6%, up from a previous projection of 6% to 7%. This remains above the central bank’s 4% target, which it still expects to achieve in 2027.

The rate decision matched expectations from all 20 analysts surveyed earlier this week.

Inflation has been driven higher by several factors, including Ukrainian drone attacks on refineries, government spending, and increased utility fees. The economy has shown minimal growth during this period.

Consumer price data showed a 6.2% increase since the beginning of 2026, compared with a 4.8% rise during the same timeframe in 2025.