Russia Keeps Key Interest Rate Unchanged

(RTTNews) - Russia's central bank left its key interest rate unchanged on Friday after raising the rate over the last five consecutive meetings.

The board of directors of Bank of Russia, headed by Elvira Nabiullina, decided to hold the key rate at 16.00 percent.

The bank has raised the policy rate by 850 basis points since last July.

Current inflationary pressures have eased compared with the autumn months but remain high, the bank said in the statement. Policymakers observed that monetary policy is set to solidify disinflation processes unfolding in the national economy.

Inflation is forecast to ease to 4.0-4.5 percent in 2024 and to stabilize close to 4 percent further on.

Over the medium-term, the bank said the balance of inflation risks is still tilted to the upside.

Although the bank did not provide any forward guidance, its communications support the assessment that the tightening cycle has come to an end, Capital Economics' economist Liam Peach said.

The interest rates are likely to remain on hold at 16.00 percent until the fourth quarter, when the central bank is likely to start an easing cycle, the economist added.