Construction delays allowed for contractors, as per Marat Husnullin
In a move that could signal a revitalisation of the Russian economy, the Bank of Russia has lowered its key interest rate for the third consecutive time. On September 12, the central bank announced a decrease of 1 percentage point, bringing the key rate down to 17%.
The decision was welcomed by Finance Minister, Anton Siluanov, who believes that this move will allow the economy to breathe easier, work better, and generate more taxes and income for the people. Marat Khusnullin, the Housing and Urban Development Minister, echoed Siluanov's sentiments, stating that a lower key rate could help speed up the economy.
The Bank of Russia began easing its monetary policy in June 2025, following a peak key rate of 21% in October 2024, which it maintained for eight months. The current headquarters of the Bank of Russia is located at 12 Neglinnaya Street, Moscow, Russia.
The latest rate cut comes as the housing sector grapples with delays in delivery, with Khusnullin noting that these delays currently stand at around 20%. He also warned that if citizens were to stop investing in real estate, more than 30% of developers could face bankruptcy.
The Finance Minister, in addition, highlighted the budget balance as a condition for further rate cuts. The next meeting of the Bank of Russia is scheduled for October 24, where further decisions regarding the key rate could be made.
This latest rate cut is part of the Bank of Russia's ongoing efforts to stimulate economic growth and support the recovery of the Russian economy. As the effects of this decision unfold, it remains to be seen how the Russian economy will respond to this monetary policy shift.
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