Russia’s central bank kept its key interest rate at 21%, meeting expectations, and indicated no further tightening is needed for disinflation. While inflationary pressures persist due to demand exceeding domestic capacity, pro-inflation risks have eased since the last meeting. This stance contrasts with earlier hawkishness when the CBR held rates despite pledging hikes, following a meeting between Governor Nabiullina, President Putin, and business leaders who opposed high borrowing costs. This shift was driven by a drop in inflation expectations, bolstered by a stronger ruble amid signals of potential US-Russia economic reconciliation, despite a rebound in growth and record-low unemployment, with Putin’s military mobilization leading to a diaspora of working-aged men.