7 percent as of April 20, and the central bank reiterated its target of reaching 4 percent by 2027. 5 percent. Russia's central bank is an exception among global central banks, many of which are considering rate hikes due to inflation from Middle East war energy effects.
As a major energy producer, Russia is less vulnerable to disruptions in the Strait of Hormuz, and high oil prices provide a welcome boost to the state budget. However, Swedish intelligence experts question the picture of a thriving Russian economy. Must chief Thomas Nilsson described war production as an unsustainable growth engine and said official economic figures are likely manipulated, with real inflation and budget deficit possibly significantly larger than reported.
6 percent. Energy revenues fell by 45 percent in the first quarter, while government spending increased by 17 percent. President Vladimir Putin demanded explanations from the government and central bank, pointing to declines in manufacturing, industrial production, and the construction sector, which fell 16 percent in January and 14 percent in February.
The central bank defended the rate cut by saying the labor market shows signs of easing after a prolonged labor shortage, and that monetary tightening is slowly starting to take effect. However, it opened the possibility of tightening policy again if government spending increases or the budget deficit grows. 6 percent in afternoon trading after the announcement.
The next rate meeting is on June 19. Elvira Nabiullina, who has been head of the central bank since 2013, began selling gold from the gold reserve in November 2025 to cover the budget deficit.