Bank of Russia cuts key rate to 15 percent

The Bank of Russia has lowered its key rate by 0.5 percentage points to 15% per annum for the second time since the beginning of the year, according to the regulator’s press release following a meeting of its board of directors.

"On 20 March 2026, the Bank of Russia Board of Directors decided to cut the key rate by 50 basis points to 15.00% per annum," the statement reads.

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 annualized terms. However, uncertainty regarding the external environment has increased considerably.

Against this backdrop, the Bank of Russia will assess the appropriateness of further key rate cuts at its upcoming meetings, depending on the sustainability of the slowdown in inflation, the dynamics of inflation expectations, as well as its assessment of risks stemming from both external and domestic conditions.

At the same time, according to the Bank of Russia’s forecast, taking into account the ongoing monetary policy, annual inflation will decline to 4.5-5.5% in 2026. 

Annual inflation in Russia, as estimated on March 16, stood at 5.9%. However, inflation expectations have not changed significantly since February, and their persistence at elevated levels may hinder a sustained slowdown in inflation, the regulator noted.

The regulator noted that it will assess both domestic and external risks when making decisions at upcoming meetings.

The Bank of Russia Board of Directors plans to hold its next key rate meeting on April 24, 2026.