Bank of Russia Lowers Key Rate to 15.5% Amid Inflation Debate

At its meeting on 13 February, the Board of Directors of the Bank of Russia decided to lower the key rate to 15.5%. The decision marked the sixth consecutive easing step in monetary policy. The current rate-cut cycle began in June, when the regulator reduced the key rate from 21% to 20% per annum. Subsequent adjustments followed in July (18%), September (17%), October (16.5%), and December (16%). What the Key Rate Represents The key rate is the minimum interest level at which the Bank of Russia extends loans to commercial banks and accepts funds on deposit. Financial institutions use this benchmark when setting interest rates for loans and deposits offered to households and businesses.