The Bank of Russia held its key rate at 14% on Friday, rebuffing corporate calls
for cuts. With parliamentary elections one week away, the Kremlin will closely
monitor turnout and results as a gauge of public anxiety and fatigue after
four-and-a-half years of the Ukraine conflict. The bank said the economy grew
modestly in Q3 2026 but current price pressures have risen sharply in recent
months. Russia's $2.6 trillion economy slowed markedly last year under high
policy rates, Western sanctions, attacks on economic targets in Ukraine and a
stronger ruble; 2026 growth is expected to be only marginally above zero. Firms
say borrowing is unprofitable at current rates and only a cut below 12% would
restore investment.
