Russian monetary conditions stay moderately tight in October
Monetary conditions remained moderately tight in October 2026, according to the Bank of Russia. RUONIA averaged 13.97 percent, close to the 14.00 percent policy rate, while preliminary annual broad money growth slowed to 9.9 percent from 11.3 percent in September.
Persistent inflation keeps rates elevated
The Bank of Russia held its policy rate at 14.00 percent on October 23, 2026.
Underlying price growth remained at an annualized 5–6 percent, reflecting temporary production constraints in some sectors; inflation expectations stayed high.
Its baseline projects average policy rates of 12.5–13.5 percent in 2027 and inflation of 7.1–7.6 percent at end-2026, returning to 4 percent in 2027.
October RUONIA fell 6 basis points from September.
Government bond yields fell at maturities of two years and longer: the two-year yield declined 24 basis points to 14.87 percent and the ten-year yield fell 32 to 16.56 percent.
The one-year yield rose 34 basis points to 14.06 percent.
Average corporate spreads widened to 256 basis points from 192.
Subsidies lower average mortgage rates
September long-term corporate lending rates fell 0.8 percentage points to 12.2 percent, mainly reflecting cheaper market-based financing.
Long-term household rates fell from 18.3 to 16.2 percent.
Mortgage rates averaged 8.6 percent, down 1.5 percentage points as subsidized lending expanded; market mortgage rates stayed at 18.0 percent.
Mortgage issuance reached 617 billion rubles, about 70 percent subsidized, ahead of tighter Family Mortgage terms.
Long-term deposit rates rose 0.7 percentage points to 11.8 percent; short-term rates held at 13.1 percent.
Lower averages mask differing conditions
Lower average lending rates did not reflect uniform easing across borrowers.
Subsidized mortgages drove the household rate decline, while corporate credit standards tightened in Q3 2026.
The report therefore distinguishes changes in loan composition from changes in market borrowing costs.