The Bank of Russia lowered its benchmark interest rate by 200 basis points to 18% on 25 July, saying price pressures are easing faster than anticipated. The decision, in line with economists’ expectations, follows the first weekly decline in consumer prices since September 2024, with the CPI falling 0.05% in the latest week. The central bank trimmed its 2025 inflation forecast to 6%-7% from 7%-8% but cautioned that inflation risks still outweigh disinflationary forces and that tight monetary conditions may be needed “for a long time”. Future rate moves, it added, will depend on how quickly inflation and inflation expectations slow. President Vladimir Putin said earlier that year-end inflation could fall to 7%, down from an annual rate of 9.6% recorded on 16 June, and praised policymakers for steering the economy toward balanced growth. The bank kept its 2025 GDP growth projection at 1%-2%, arguing that lower borrowing costs should help revive lending while maintaining price stability amid geopolitical uncertainty.