Monetary Easing Continues: Russia Cuts Key Rate Despite Rising Inflation Expectations

The Bank of Russia has extended its monetary easing cycle launched last year, opting for a cautious step by lowering the key interest rate by 50 basis points to 15% at its March 20 meeting. Seventh Consecutive Rate Cut The decision marks the seventh consecutive rate reduction since the easing cycle began in June 2025. According to the regulator, the move reflects a balancing act between slowing inflation and rising uncertainty in both domestic and external conditions. In its official statement, the Bank of Russia noted that after an acceleration in January, price growth has "expectedly slowed.” Core indicators of inflation remain within the 4-5% annualized range.