Bank of Russia cuts key interest rate to 17 pct

The Bank of Russia on Friday cut the key interest rate for the third time since June, by 1 percentage point, to 17 percent. Russia's annual inflation currently stands at 8.2 percent and is expected to decline to 6-7 percent for 2025. It's foreseen to reduce to 4 percent in 2026 before remaining in the targeted range.

The share of enterprises experiencing labor shortages has continued to shrink, the statement said, adding that wages have risen at a rate slower than in 2024, but still outpaced the growth in labor productivity. "Unemployment is at its record lows," it noted.