Published by Global Banking & Finance Review®
Posted on March 16, 2026
3 min readLast updated: March 17, 2026
The Bank of Russia is expected to cut its benchmark rate by 50 basis points to 15% at its March 20 meeting amid surging oil prices—up over 40% since the U.S.–Israeli attacks on Iran—and easing inflation trends.
By Elena Fabrichnaya
MOSCOW, March 16 (Reuters) - The Russian central bank is likely to cut its benchmark interest rate by 50 basis points to 15% at a meeting on March 20 as a spike in global oil prices after the U.S.-Israeli attacks on Iran creates new uncertainty, a Reuters poll of 23 analysts showed on Monday.
Global oil prices have surged by 40% since the attacks began, climbing to their highest since 2022, while the U.S. has also lifted sanctions on some Russian oil. Both factors have made Russia one of the biggest beneficiaries of the conflict.
However, Russian policymakers, who drafted a package of austerity measures just before the Iran war started to counter the impact of falling oil prices and prevent the country's fiscal reserve fund from being depleted, are yet to formulate their response.
"This need (for austerity measures), which arose when oil prices fell below $45 per barrel in December-February, may quietly disappear along with the cause that generated it," said Maxim Petronevich from Rosselkhozbank.
All 23 analysts polled said they believe the central bank will cut by 50 basis points.
The central bank has been cutting its key rate since last June but, currently at 15.5%, it is still above the 12% level which businesses think could allow economic growth to speed up.
"The central bank may adjust its signal regarding future decisions to be more cautious in light of the sharp rise in global energy prices," said Igor Rapokhin, senior debt market strategist at SberCIB.
The central bank is expected to comment both on the spike in oil prices and on the planned austerity package, which should include a cut in the so-called cut-off price of oil above which the energy revenues should flow into the reserve fund.
The Russian government is also preparing a possible 10% cut to all "non-sensitive" spending in this year's budget, sources told Reuters last week, but the final decision will hinge on the sustainability of the oil price rise triggered by the Iran war.
Petronevich said the closure of the Strait of Hormuz will have a positive impact on global prices for a wide range of Russian export goods, including oil, gas, coal, aluminium, fertilizers and wheat.
Alfa Bank's analysts added that even a short-term spike in prices for Russian exports could slow the cooling down of the labour market, a process closely watched by the central bank.
They also warned of "a wave of proinflationary risks" due to the conflict. Russian inflation slowed to 0.7% in February after a 1.6% jump in January due to a hike in value-added tax at the start of the year.
(Writing by Gleb Bryanski; Editing by Hugh Lawson)
Analysts expect the Russian central bank to cut its benchmark rate by 50 basis points due to increased oil prices and economic uncertainty from the Iran war.
Global oil prices surged by 40% after the onset of the U.S.-Israeli attacks on Iran, reaching their highest since 2022.
The Russian government is preparing a possible 10% cut to non-sensitive budget spending, depending on the sustainability of increased oil prices.
Analysts warn of pro-inflationary risks due to the conflict-driven spike in Russian export prices, which may slow labor market cooling and increase inflation.
Russian inflation slowed to 0.7% in February after a jump to 1.6% in January, which was linked to a value-added tax hike.
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