The key interest rate is the minimum percentage at which the Central Bank provides loans to commercial banks and accepts their funds on deposits. Increasing this rate helps combat inflation: more expensive loans lead the population to prefer saving money in deposits, resulting in reduced demand for goods and services, and slowing price growth. Conversely, lowering the rate makes loans more accessible, which promotes increased consumption and investment.
Dynamics of the Key Interest Rate
The key interest rate was reduced in June 2025 to 20% — this was the first decrease in nearly three years. In the following month, it was set at 18%, and in September, it was set at 17%.
Previously, in September 2022, the regulator had already lowered the rate to 7.5%.
In mid-2023, the Bank of Russia began raising the rate in response to rising inflation and active lending.
In July of last year, the key interest rate was increased by two percentage points to 18%. In September, it was raised by another percentage point, and in October, the rate increased by two points, reaching a record level of 21%. This historical maximum was maintained for more than seven months.
