OREANDA-NEWS  The Bank of Russia lowered its key rate by 0.5 percentage points.

"On December 19, 2025, the Board of Directors decided to reduce the key rate to 16.00% per annum," the regulator said following the meeting.

The key rate is the minimum interest rate at which the Central Bank issues loans to commercial banks and accepts funds from them for deposits. An increase in the rate helps to reduce inflation: loans become more expensive, so it becomes more profitable to open deposits and save. The demand for goods and services is decreasing, and prices are rising more slowly. When the interest rate is lowered, loans become cheaper, which stimulates consumption and investment.

The majority of analysts polled by RIA Novosti expected the value to drop to 16% or 15.5%. Some believed that the indicator would remain at the same level.