Bank of Russia Set to Cut Rates as Economy Slows, Plans Crypto Derivatives Access for Funds
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he Bank of Russia is expected to cut interest rates by 200 basis points on Friday, likely bringing the key rate down to 16% as the economy slows sharply. Growth has slipped to the low end of the bank’s 1%–2% forecast, industrial output is weakening, and inflation has cooled to about 2%, opening the door for deeper cuts. Businesses have been pressuring for cheaper financing, but policymakers remain divided: some warn of technical stagnation, while others see no major risks. Budget deficits, rising fuel prices, and high inflation expectations complicate the outlook. Separately, the Bank of Russia confirmed it will allow investment funds to buy cryptocurrency derivatives starting in 2026, expanding access beyond brokers. The move will be restricted to highly qualified investors with strict wealth or income requirements, as authorities cautiously open the market while prioritizing traditional assets.