The Bank of Russia held its key interest rate at 14.00% on Sept. 11, 2026, pausing a rate-cutting campaign that had reduced borrowing costs from a mid-2025 high of 21%. The decision followed a 25-basis-point cut on July 24 and marked the first hold since June 2025. Governor Elvira Nabiullina’s board cited accelerating underlying price growth, estimated at an annualized 5%-6%, as inflationary pressures from Ukrainian drone strikes on refineries, shipping terminals and e-commerce warehouses, along with expansionary government spending, outweighed disinflationary forces. Annual inflation was 6.3% as of Sept. 7, while the central bank forecast 6%-7% inflation for 2026 and said it expects to return to its 4% target in 2027. The economy continued to grow moderately in the third quarter, lending accelerated and real monetary conditions eased slightly, while consumption remained elevated and the labor market tight. Markets now face the possibility that rates will remain at 14% for an extended period or rise again if inflation worsens.