MOSCOW, September 12. /TASS/. The Russian stock indices accelerated their decline during the main trading session on the Moscow Exchange following the Central Bank’s decision to lower the key rate to 17%, according to trading data.

Before the regulator’s decision was published, the MOEX and RTS indices fell by 0.59% to 2,890.99 points and 1,063.13 points respectively. The yuan exchange rate fell to 11.87 rubles (-7.9 kopecks), according to trading data as of 01:25 p.m. Moscow time.

As of 01:30 p.m. Moscow time, following the Central Bank's decision, the MOEX index accelerated its decline and fell to 2,867.2 points (-1.41%). In the meantime, the RTS index fell by 1.41%, to 1,054.38 points.

By 01:45 p.m. Moscow time, the MOEX index slowed its decline and reached 2,874.96 points (-1.14%), the RTS index went down by 1.14%, to 1,057.23 points.

According to data as of 01:30 p.m. Moscow time, the ruble exchange rate remained at 11.86 rubles (-8.9 kopecks). By 01:52 p.m. Moscow time, the yuan accelerated its decline and amounted to 11.778 (-17.1 kopecks), the ruble in turn strengthened.

By 03:12 p.m. Moscow time, the MOEX index had accelerated its decline again and was at 2,863.99 points (-1.52%), the RTS index went down by 1.52%, to 1,053.16 points. The yuan arte significantly accelerated its decline and was at 11.731 rubles (-21.78 kopecks).

On the regulator’s decision

On Friday, the Bank of Russia lowered the key interest rate for the third consecutive time, this time by 1 percentage point, bringing it down to 17% per annum. The regulator intends to maintain such a level of monetary policy strictness as necessary to bring inflation back to target by 2026, with further decisions on the key rate to depend on the sustainability of the inflation slowdown and the dynamics of inflation expectations.

Forecasts for the Central Bank key rate

"We expect that the Bank of Russia will most likely continue to carefully reduce the key rate: it may reach 15% by the end of 2025. In the future, pauses in the easing of monetary policy, including long ones, are not excluded, and by the end of 2026, in the absence of the implementation of external and internal risks, the key rate may be 12%," Natalia Vashchelyuk, senior analyst at Pervaya Management Company, noted.

Chairman of the State Duma Committee on Financial Markets Anatoly Aksakov told journalists that after today's reduction of the key rate by the Bank of Russia by 1 percentage point, to 17% per annum, there remains the possibility of reducing it to 15% by the end of 2025. Aksakov also said that further decisions of the Central Bank on the key rate will be made taking into account the parameters of the federal budget for the next three years. In his opinion, the regulator will continue to reduce the key rate at the next meetings, but a pause in its reduction is also not excluded.

About the key rate

At the meetings on December 20, 2024, February 14, March 21 and April 25, 2025, the Bank of Russia kept the rate at 21% per annum. The regulator pointed out that given the significant growth in interest rates for end borrowers and the cooling of credit activity, the achieved strictness of monetary conditions creates the necessary prerequisites for the return of inflation in Russia to the target indicator of 4%.

On June 6, 2025, the key rate was reduced to 20% per annum. The regulator explained this by the gradual return of the economy to balanced growth and a decrease in inflationary pressure.

On July 25, the regulator lowered the key rate for the second time in a row - by 2 percentage points at once, citing a faster than expected decrease in inflationary pressure and a slowdown in the growth of domestic demand.