Russia Central Bank Cuts Rate By 50 Bps

(RTTNews) - Russia's central bank cuts its interest rate for the second straight time this year despite rise in oil prices amid conflict in the Middle East.

The Board of Directors of the Bank of Russia decided to cut its interest rate by 50 basis points to 15.00 percent. The outcome of the meeting came in line with expectations.

The bank had previously reduced the rate by 50 basis points in February.

Price growth predictably decelerated in February after a temporary acceleration last month. The bank estimated the underlying measures of current price growth remained in the range of 4-5 percent in an annualized terms.

Given the monetary policy stance, annual inflation is forecast to ease to 4.5-5.5 percent in 2026.

Underlying inflation is projected to be close to 4 percent in the second half of 2026. In 2027 and beyond, annual inflation will stay on target, the bank said.

The board observed that monetary conditions eased somewhat but remained tight. Further, policymakers said proinflationary risks still prevail over disinflationary ones on the mid-term horizon.

Fiscal policy is set to slow down inflation over the medium-term horizon. Changes in the fiscal policy parameters may require an adjustment in the monetary policy pursued, they added.