Central Bank: Russian Economy Overheating Again In the third quarter of 2026, the Russian economy moved into a positive output gap: domestic demand continued to grow, and the ability of individual industries to increase production was temporarily limited. This is stated in the summary of the discussion on the key rate of the Bank of Russia. The resulting imbalance between supply and demand increased the ongoing inflationary pressure. The central bank believes that in order to gradually eliminate this imbalance, it is necessary to maintain a restrictive monetary policy. As production capacity recovers and domestic demand growth slows, the output gap should narrow. At the last meeting on October 23, the regulator kept the key interest rate at 14% per annum.

Central Bank: Russian Economy Overheating Again In the third quarter of 2026, the Russian economy moved into a positive output gap: domestic demand continued to grow, and the ability of individual industries to increase production was temporarily limited. This is stated in the summary of the discussion on the key rate of the Bank of Russia. The resulting imbalance between supply and demand increased the ongoing inflationary pressure. The central bank believes that in order to gradually eliminate this imbalance, it is necessary to maintain a restrictive monetary policy. As production capacity recovers and domestic demand growth slows, the output gap should narrow. At the last meeting on October 23, the regulator kept the key interest rate at 14% per annum.