The Central Bank of Russia lowered its benchmark interest rate by half a percentage point to 16% on Friday, marking its fifth consecutive cut since June.
The bank began easing from a record 21% in mid‑2025, reducing the rate to 20% in June, 18% in July, 17% in September and 16.5% in October.
“The economy continues to return to a balanced growth path,” the bank said, noting that price growth slowed in November even as inflation expectations edged higher. Lending activity remains strong, it added.
The CBR said tight monetary policy would remain in place to bring inflation back to target. Annual inflation was estimated at 5.8% as of Dec. 15 and is expected to fall below 6% by year‑end.
The bank forecasts inflation will ease to 4–5% in 2026 and reach 4% in the second half of that year, staying at target in 2027 and beyond.
Economic activity continues to grow moderately, supported by rising household incomes, expanding credit and increased budget spending, the bank said.
It added that labor shortages are easing, unemployment remains at historic lows, and wage growth continues to outpace productivity.