Nabiullina spoke about a reduction in the key rate and inflation in 2026.

Nabiullina spoke about a reduction in the key rate and inflation in 2026.

      Recently the head of the Bank of Russia, Elvira Nabiullina, spoke before deputies of the State Duma. Among other things, she commented on issues related to the key rate, inflation and VAT.

      Nabiullina said that the cycle of key rate cuts will span the entire 2026. At the same time, the regulator does not plan a sharp cut — it needs to ensure the end of the period of rising prices while not creating problems for the economy. If the rate is cut sharply, it would lead to an explosive surge in demand.

      In addition, the chair of the Bank of Russia noted that inflation should fall to 4% in the second half of 2026. She added that in the coming months inflation expectations may remain high due to increases in VAT, gasoline prices and the utilization fee. This was reported by kommersant.ru.

      Finally, Nabiullina commented on the impact of the VAT increase on inflation. According to her, the direct impact will amount to up to 0.8 percentage points. The indirect impact is very difficult to assess at this stage.

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Nabiullina spoke about a reduction in the key rate and inflation in 2026.

The Chairwoman of the Bank of Russia spoke in the State Duma.