OR Russian Central Bank reduced its basic interest rate by a percentage unit 20% on Friday, saying that economic growth slows down and inflation slows down.

“Current inflationary pressures, including subjects, continue to decline. While increasing domestic demand continues to go beyond the potential for expanding the supply of goods and services, the Russian economy is gradually returning to a balanced growth course, “the bank said in a statement.

A Reuters poll had predicted that the Central Bank would keep the main interest rate unchanged. This was 21% since last October to limit inflation to the overheated economy, which focuses on the needs of the army fighting in Ukraine.

As a result, Russia’s economic growth rate decreased to 1.5% annually in the first four months of 2025, compared to 4.3% last year, causing strong criticism of central bank governor Elvira Nabiulina.

Consumer prices have risen by 3.39% since the beginning of the year, compared to 3.88% in the same period last year, while the annual inflation rate decreased below 10% in May, up to 10.34% in March.

The Central Bank provides for inflation this year at 7% to 8% and economic growth at 1% to 2%. The Ministry of Economy is more optimistic, predicting 2.5%growth.

His rise is largely due to the efforts of US President Donald Trump to bring Russia and Ukraine to the negotiating table. However, most analysts agree that without any significant evolution in talks, the ruble is waiting for a push to start falling.