Russia Central Bank Cuts Key Rate to 15% Amid Oil Price Surge
The Bank of Russia has reduced its key interest rate by 0.5 percentage points to 15%, marking the seventh consecutive cut in a row. This decision was made despite a recent surge in global oil prices triggered by the U.S.-Israel attack on Iran, which typically provides a significant economic boost to Russia. The rate reduction brings borrowing costs down from a peak of 21% recorded in 2025 and from 15.5% in the previous meeting. Analysts note that this move aims to support an economy that had been showing signs of faltering, even as higher energy revenues offer potential relief. The policy shift highlights the central bank's focus on long-term stability over short-term gains from commodity price fluctuations.
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Russia Central Bank Cuts Key Rate to 15% Amid Oil Price Surge
The Bank of Russia has reduced its key interest rate by 0.5 percentage points to 15%, marking the seventh consecutive cut in a row. This decision was made despite a recent surge in global oil prices triggered by the U.S.-Israel attack on Iran, which typically provides a significant economic boost to Russia. The rate reduction brings borrowing costs down from a peak of 21% recorded in 2025 and from 15.5% in the previous meeting. Analysts note that this move aims to support an economy that had been showing signs of faltering, even as higher energy revenues offer potential relief. The policy shift highlights the central bank's focus on long-term stability over short-term gains from commodity price fluctuations.
WSJ.com: World News