Russian Central Bank Keeps Rate at 14%

The Russian Central Bank has kept the main interest rate unchanged at 14%, following a series of ten rate cuts, amid rising inflationary pressures driven by increased spending, labor shortages, and Ukrainian attacks on refineries and logistics centers. The Russian economy is facing inflation approaching 6% in July, exceeding the 4% target, with expectations that inflation will remain between 6-7% throughout 2026 before returning to 4% in 2027. The current decision reflects the bank's desire to maintain price stability while inflationary pressures persist, as rising fuel prices and logistical costs limit the scope for future interest rate cuts.

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