Central Bank of Russia cuts key rate by 50 bps, to 15% per annum
MOSCOW. March 20 (Interfax) - The board of directors of the Central Bank of Russia has cut the key rate, with the change once again 50 basis points (bps) and the rate reduced to 15% per annum.
The vast majority of analysts expected a rate cut of 50 bps, although some experts also allowed for a larger step of 100 bps.
"The economy is approaching a balanced growth path. In February, price growth predictably decelerated after a temporary acceleration in January. The Bank of Russia estimates that the underlying measures of current price growth remain in the range of 4%-5% in annualised terms. However, uncertainty regarding the external environment has increased considerably," the CBR said in a press release issued following the board of directors' meeting on Friday.
The Central Bank will assess the appropriateness of further key rate cuts at upcoming meetings depending on the sustainability of the disinflation trend, the dynamics of inflation expectations and an assessment of risks from external and internal conditions, the CBR said.
At the previous meeting, on February 13, the rate was cut by 50 bps, to 15.5% per annum; the same step was taken on December 19 and October 24, 2025. In September last year, a decision was made to cut the rate more substantially - by 100 bps. Prior to this, on July 25, the Central Bank's board of directors decided to cut it by 200 bps, to 18% per annum from 20% per annum. Earlier, for the first time in more than two and a half years, a decision to cut the rate (by 100 bps, from 21% per annum) was made on June 6.
Prior to June, the Central Bank kept the rate at 21% per annum for four consecutive meetings after raising it on October 25, 2024 by 200 bps from 19%.
At the meeting on December 20, 2024, it was decided to keep the rate at this level, although most analysts expected it to increase. Then, on February 14, March 21 and April 25, 2025, the rate remained at the same level.
The next meeting of the Central Bank's board of directors on the rate will be held on April 24.
