Russia's central bank cut its monetary policy interest rate by 100 basis points, marking the first decrease since the start of the war in Ukraine

Russia's central bank has decided to cut its monetary policy interest rate from 21% to 20%, the first decrease since the start of the war in Ukraine. Seasonally adjusted inflation has fallen to 6.2% and the Russian economy could return to balanced growth, although domestic demand is outpacing supply. GDP grew, but slowed to 1.4% in the first quarter of 2025. The ruble remains strong despite the economic challenges posed by the conflict.