Russia Central Bank Likely to Cut Rate to 15 Percent
Analysts expect Russia to cut its key interest rate by 50 basis points to 15% this Friday. Higher oil prices following attacks on Iran drive the decision.
The central bank of Russia is expected to lower its benchmark interest rate by 50 basis points to 15% during its upcoming meeting on March 20, according to a Reuters poll of 23 analysts. This anticipated move follows a surge in global oil prices triggered by military actions involving the United States, Israel, and Iran.
Global oil prices have climbed 40% since the conflict began, reaching their highest levels since 2022. Additionally, the United States has lifted sanctions on certain Russian oil exports, making the country a primary beneficiary of the current market volatility. Despite previously drafting austerity measures to counter low oil prices, policymakers are now reassessing their fiscal strategy as revenues rise. Maxim Petronevich from Rosselkhozbank noted that the previous economic pressures might be subsiding.
