Russia's central bank left its key interest rate unchanged for a second month, as the economic recovery gained momentum and inflation slowed.
The Bank Rossii kept its refinancing rate at a record low of 7.75% on Friday. The central bank had lowered the key rate fourteen times since April 2009.
The bank said in a statement that macroeconomic indicators have showed positive signs. Moreover, inflation continued to ease. Consumer prices rose 5.8% year-on-year in June compared with the 6% increase in May. By July 26, Russia's inflation was 5.7%. The bank said the current inflation level does not warrant a monetary policy revision.
Given that the unemployment rate has already reached pre-crisis level, its further reduction may be a sign that the economy is returning to a sustainable growth period. The central bank also cited an increase in fixed investment, retail trade and bank lending.
However, the volume of consumer lending remained below pre-crisis level, whereas households' deposits volume continued to grow. The central bank said this trend indicates that there is potential for a growth in domestic demand.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.