Summary of the Key Rate Discussion released
The publication covers the main aspects of the discussion about the economic situation and inflation, monetary and external conditions, and alternatives to the key rate decision.
At the key rate meeting in June, the discussion centred on whether the decrease in inflationary pressures was sustainable and fast enough to bring inflation back to the target in 2026. According to most discussants, there were more grounds to believe that inflation would continue decelerating at the required pace. The economy has been gradually returning to a balanced growth path. The ruble strengthening, largely associated with tight monetary policy, has also been contributing to disinflation.
Following the discussion, the Board of Directors decided to cut the key rate by 100 bp to 20.00% per annum. Further key rate decisions will depend on the pace and sustainability of the decrease in inflation and inflation expectations. The Bank of Russia will maintain monetary conditions as restrictive as necessary for returning inflation to the target in 2026. This means that monetary policy will remain tight for an extended period.