Russia's central bank lowers key rate to 20 percentage

The Russian Central Bank cut its key interest rate by 100 basis points to 20 percent as inflation pressures decline, it said in a statement Friday.

The bank said that current inflationary pressures were gradually easing, noting however that domestic demand was "still outstripping the capabilities to expand the supply of goods and services." To return inflation to its 4 percent target in 2026, the bank said, it would maintain tight monetary conditions for as long as necessary. 

Meanwhile, Russia's largest bank Sberbank announced it will lower rates on its main deposits by 1 percentage point to a maximum of 19 percent per annum for all terms from June 11. The central bank had maintained its key interest rate at 21 percent since Oct. 25, 2024. It will hold its next key rate meeting on July 25.