MOSCOW, October 23. /TASS/. The Bank of Russia has decided to keep its key rate at 14%, as current price pressure remains elevated, according to a press release from the regulator.

"On 23 October 2026, the Bank of Russia Board of Directors decided to keep the key rate at 14.00% per annum. The economy as a whole is growing at a moderate pace in 2026 H2. Current price pressures remain elevated. Inflation expectations stay high. According to the Bank of Russia’s estimates, underlying price growth has not yet decreased and remains in the range of 5-6% in annualized terms, primarily due to the impact of a temporary reduction in production capacities in certain sectors. This requires aggregate demand to grow moderately for underlying inflation to resume its decline," the regulator said.

The Bank of Russia notes that it will make further decisions on the key rate depending on the dynamics of inflation and inflation expectations, as well as the analysis of risks posed by domestic and external conditions. According to the Central Bank, the current seasonally adjusted price growth averaged 8.0% in annualized terms compared to 4.8% in 2026 Q2. The similar indicator of core inflation rose to 6.2% from 4.5% in 2026 Q2. Price dynamics were still affected by volatile components, primarily motor fuel. As of 19 October 2026, annual inflation stood at 6.8% and is expected to come in at 7.1-7.6% as of the end of 2026

"High inflation expectations impede a slowdown in inflation. Despite a slight decrease in the expectations of households and businesses in October, they have generally remained near two-year highs in recent months. Expectations of financial market participants and analysts have increased," the regulator added.

The Bank of Russia noted that according to high-frequency data, the economy is growing at a moderate pace in 2026 H2.

"Business sentiment improved somewhat in October compared to low levels of the previous months. Growth in consumer demand is slowing but remains elevated. Investment activity continues to recover compared to the levels of early 2026," the regulator said.