Central Bank of Russia Governor Elvira Nabiullina announced a key interest rate cut to 18% and emphasized the need for a tight monetary policy to control inflation.

Elvira Nabiullina said the cut in the key interest rate from 20% to 18% signals the start of a controlled decline in inflation, but it is essential that monetary policy remains restrictive to reach the 4% target by 2026. Bank officials are looking at scenarios for lower interest rates, but stress that stabilizing inflation is crucial. Nabiullina dismissed speculation of a banking crisis, saying the sector is sound. She also revised down the oil price forecast and warned of necessary adjustments depending on budget changes.