Bloomberg forecasts Bank of Russia key rate to fall to 10% by end of 2027

The projection signals a gradual easing cycle, though domestic lenders like VTB see a higher average rate path for next year.

By Handelsavisen Newsroom · Automated 2026-07-06 08:08 UTC · 1 min read

Bloomberg Economics has projected that the Bank of Russia will lower its key interest rate to 10% by the end of 2027, outlining a path for continued monetary easing over the coming year.

The forecast suggests that while the central bank is expected to maintain a restrictive stance relative to historical norms, the trajectory points toward a steady reduction in borrowing costs as inflationary pressures stabilize.

This outlook aligns with the Bank of Russia’s preparation for its upcoming policy meeting on July 24, where officials are expected to evaluate a potential rate cut.

The central bank has signaled a shift toward a more accommodative stance, driven by signs that inflation is moderating.

However, the pace of easing is anticipated to be gradual, reflecting the need to ensure price stability remains anchored.

Domestic financial institutions are adjusting their expectations in line with this shifting landscape.