The Bank of Russia lowered its key interest rate to 17 percent.

      At today's meeting the Bank of Russia decided to lower the key rate by another 100 basis points — to 17% per annum. The regulator noted that price growth indicators have not changed much recently and generally remain above 4% per annum. Inflation expectations are also still high. However, the economy continues to return to balanced growth. In particular, credit growth has picked up again. Further decisions on the key rate will depend on what happens to inflation and inflation expectations. According to the Bank's updated forecast, annual inflation will return to the target (4%) in 2026 and will remain there thereafter. It is expected to be 6–7% this year. Note that the next meeting on the key rate will take place on October 24.