MOSCOW, September 11. /TASS/. The Bank of Russia has decided to keep the key rate at 14% per annum, noting that current price pressures have increased in recent months, according to the regulator’s press release following its board meeting.

"On September 11, 2026, the Bank of Russia Board of Directors decided to keep the key rate at 14% per annum. The economy as a whole is growing at a moderate pace in 2026 Q3. Current price pressures have increased significantly in recent months," the regulator said.

The Bank of Russia added that it would make further key rate decisions based on the dynamics of inflation and inflation expectations as well as the analysis of risks posed by domestic and external conditions.

Underlying price growth has accelerated to 5-6% in annualized terms, primarily due to the impact of a temporary reduction in production capacities in certain sectors, the Central Bank added. "As these effects fade and aggregate demand grows moderately, underlying inflation will resume its decline. As of 7 September 2026, annual inflation stood at 6.3%," the press release said.

Inflation expectations of households, businesses, and financial market participants in Russia have changed diversely, remaining elevated though, which may impede a sustained slowdown in inflation, the regulator noted.

"According to high-frequency data, the economy is growing at a moderate pace in 2026 Q3. Growth in consumer demand is slowing but remains elevated. Investment activity continues to recover compared to the levels of early 2026," the document said.

The labor market tightness is gradually easing, according to the press release. "Survey results indicate that labor shortages continue to decrease. Wage growth is slowing and gradually converging with labor productivity growth, although the gap between them remains significant. Unemployment is near historic lows but has risen slightly in recent months," the regulator said.

Monetary conditions are assessed as moderately tight. Interest rates have changed diversely in various segments of the financial market. Taking into consideration the dynamics of inflation expectations, the overall tightness of monetary conditions has decreased slightly in real terms. Non-price bank lending conditions are still tight, the Bank of Russia said.

"Lending activity has been elevated in recent months, driven primarily by the corporate segment. The retail loan portfolio has been growing moderately. Households’ propensity to save has decreased slightly but remains high," the regulator noted.

Proinflationary risks have increased and prevail over disinflationary ones on the medium-term horizon, the Central Bank added. "Main proinflationary risks are associated with the supply-demand imbalances, driven by higher domestic demand and a longer contraction of production capacities in certain industries. Elevated inflation expectations may intensify the pass-through of costs to prices. Proinflationary risks associated with a long period of wage growth outpacing productivity growth as well as with a deterioration in the global economic outlook and rising global price pressures amid geopolitical tensions are still in place. Disinflationary risks involve a more significant slowdown in domestic demand," the press release said.

"The Bank of Russia’s July baseline scenario assumes a gradual decrease in the structural primary budget deficit to zero in 2029. Fiscal policy parameters, including the trajectory of returning to a zero structural balance, will be further detailed in the October forecast after the Government submits new medium-term budget projections to the State Duma. If these projections assume a higher structural primary budget deficit, a tighter monetary policy stance than stipulated in the baseline scenario may be required," the Bank of Russia concluded.