Bank of Russia signals openness to July rate cut as inflation pressures ease

Central Bank advisor Kirill Tremasov says the feasibility of a policy rate reduction will be assessed at the July 24 meeting, aligning with Sberbank’s forecast of a 13% year-end rate.

By Handelsavisen Newsroom · Automated 2026-07-02 18:12 UTC · 1 min read Last updated: 2026-07-02 18:44 UTC

The Bank of Russia is preparing to evaluate a potential cut to its key interest rate at its upcoming policy meeting on July 24, marking a shift toward a more accommodative stance as inflationary pressures show signs of moderating.

Kirill Tremasov, an advisor to the Central Bank governor, indicated that the institution will assess the feasibility of lowering rates, suggesting that the monetary policy committee is closely monitoring economic data for signs that disinflation is becoming entrenched.

Sberbank recently narrowed its forecast for the Bank of Russia’s key rate at the end of 2026, removing the lower bound of its previous range and now expecting the rate to stand at 13%.

This development comes as major Russian lenders have already adjusted their expectations for the policy rate trajectory.

Sberbank recently narrowed its forecast for the Bank of Russia’s key rate at the end of 2026, removing the lower bound of its previous range and now expecting the rate to stand at 13%.

This downward revision reflects growing confidence among financial institutions that the central bank may begin easing monetary policy sooner than previously anticipated.

The potential rate cut would represent a significant pivot for the Bank of Russia, which has maintained a restrictive stance to combat high inflation driven by fiscal spending and supply-side constraints.