Small font size A Larger text size A Largest text size A

Russia's Central Bank Cuts Key Rate by 50bps to 16.0%, as Expected

BY MT Newswires | ECONOMIC | 12/19/25 08:07 AM EST

08:07 AM EST, 12/19/2025 (MT Newswires) -- Russia's central bank (CBR) Friday said its Board of Directors decided to cut the key rate by 50 basis points to 16.0%.

The reduction was widely expected, wrote Scotiabank in a note to clients.

Guidance noted that "monetary policy will remain tight for a long period" with inflation running at 6.6% year over year.

The government plans a 2% increase in the VAT (sales tax) to 22% because of fiscal pressures emanating from Russia's war on Ukraine, pointed out Scotiabank.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

More Fixed Income News

KBRA Assigns AAA Rating to Dallas Independent School District, TX: Unlimited Tax Bonds Series 2026A and 2026B BY Business Wire |MUNICIPAL 12/19/25 05:51 PM EST
White House's Hassett tells Fox Business Trump is right where others are wrong about inflation BY Reuters |ECONOMIC 12/19/25 05:19 PM EST
US Equity Indexes Rise Amid Risk-On Sentiment in Technology BY MT Newswires |ECONOMIC 12/19/25 04:55 PM EST
Brightline Florida hit with five-notch S&P downgrade BY SourceMedia Bond Buyer |CORPORATE 12/19/25 04:30 PM EST

All Fixed Income News

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article