Putin Says He Won't Interfere in Bank of Russia Decisions
The Bank of Russia has reduced its key interest rate to 16%, marking a 50-basis-point cut. The decision was announced on December 19, 2025, in Moscow, following a period of stabilising inflation. Central Bank Governor Elvira Nabiullina had previously considered either a 50 or 100-basis-point reduction before finalising the move.
The rate cut comes as part of a broader shift in monetary policy. Updated forecasts now suggest further easing in the years ahead. By 2026, the key rate could sit between 13% and 15%, before dropping to 7.5–8% by 2027–2028.
President Vladimir Putin reaffirmed the central bank’s independence during the announcement. He stressed that Russian law explicitly protects the institution from political interference. The Bank of Russia’s Board of Directors unanimously approved the reduction, lowering the rate from 16.5% to 16% per annum. The decision reflects confidence in inflation remaining under control. Nabiullina had signalled potential cuts in earlier statements, weighing both a modest and a more aggressive reduction. The final choice of 50 basis points aligns with a cautious approach to economic stability.
The rate now stands at 16%, with projections indicating a steady decline over the next three years. The central bank’s updated forecast points to a gradual return to lower borrowing costs. Putin’s remarks reinforced the legal framework ensuring the bank’s autonomy in future decisions.
