Russian Central Bank Decides to Continue Cutting Rates, Stresses Tight Stance to Curb Inflation

On December 19, 2025, the Bank of Russia decided to continue cutting its key interest rate during its final board meeting of the year. Governor Elvira Nabiullina simultaneously emphasized to the market that the bank would maintain a tight monetary policy stance to bring inflation down to target, noting this orientation would last for a "long period".

This signaling of "easing while tightening" indicates the central bank's attempt to balance stimulating economic growth with curbing high inflation. Despite initiating a rate-cutting cycle, the bank is using forward guidance to manage market expectations and prevent inflation expectations from becoming unanchored, reflecting its primary concern for domestic price stability.