Bank of Russia submits 2025 Annual Report to State Duma
The economy continued to grow at a moderate pace in 2025. Monetary policy helped temper inflation, while enabling businesses to develop and manufacture necessary goods. Inflation decelerated as of the end of 2025, reaching its five-year low. This indicates a gradual return to supply and demand equilibrium, which allowed the Bank of Russia to switch to an incremental key rate reduction in the middle of the year.
‘At the beginning of last year, we saw a disinflation trend emerging, but time was needed to make sure that the deceleration was sustainable. It was not until June that we were able to start a key rate decrease, and we are still far from the end of this cycle. Both Russian and global experience proves that, when an economy is transitioning away from a period of demand overheating, the central bank needs to act very cautiously and assess all risks quite conservatively,’ Bank of Russia Governor Elvira Nabiullina emphasised in her address to the readers of the Annual Report.
‘The key objective is to end the period of high inflation solidly,’ Bank of Russia Governor stressed. ‘This is the Central Bank’s tangible contribution towards ensuring growth in households’ real incomes, maintaining moderate interest rates in the economy, providing opportunities for business development, and addressing strategic tasks in the domestic economy.’
In 2025, banks continued to support the economy through lending, while companies were actively raising borrowings through bond issues. The Bank of Russia’s measures aimed at limiting households’ and companies’ debt burden ensured financial stability and helped banks maintain adequate risk management and increase their capital cushions.
Jointly with lawmakers, the Bank of Russia took new measures to protect financial consumers’ and investors’ interests, further develop the capital market, and advance the payment system. Important results of the Bank of Russia’s work in 2025 include the launch of the reform in the microfinance market intended to reduce people’s debt burden and a substantial decrease in fraud in the credit and financial sector after the enactment of measures developed with the participation of the regulator.
The Annual Report presents these and other results of the Bank of Russia’s work and contains its financial statements and auditors’ reports. Simultaneously with its Annual Report, the regulator releases an abridged version for the general public – The Bank of Russia’s Work: Results in Brief for 2025.