25-Basis Point Central Bank Interest Rate Cuts in Russia and Kazakhstan
July 24, 2026
As expected, the Central Bank of Russia policy interest rate was sliced by another 25 basis points to 14.0% at today’s scheduled review. The rate has altogether been lowered so far this year by 200 basis points on top of the 500-bp reduction engineered in the last seven months of 2025. Officials released an explanation of today’s action, noting that “Considerable price growth and higher inflation expectations in the summer months were mainly associated with one-off factors. Measures of underlying inflation remain within the range of 4–5% in annualized terms.” Russian consumer prices were 6.0% higher than a year earlier in June, still well below the new policy rate level. Economic growth earlier this year was stagnant in Russia.
At the National Bank of Kazakhstan, officials also cut the policy interest rate by 25 basis points, but their decision had not been foreseen. The rate had been slashed by a full percentage point at the previous review in June, and Kazakhstani CPI inflation remains in double-digit territory at 10.3%. The new rate level matches the 16.75% level that had prevailed from December 2022 until August 2023. Even as they cut the rate today, officials conceded that inflation risk remains skewed to the upside.
Copyright 2026, Larry Greenberg. All rights reserved.
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