Russia's Central Bank Maintains Key Interest Rate at 21%

The Bank of Russia has announced that its Board of Directors has decided to keep the key interest rate unchanged at 21%. This decision comes as the central bank seeks to balance inflationary pressures with the need to stimulate economic activity.

Inflation and Monetary Conditions

The bank highlighted that the current tight monetary conditions are essential for resuming disinflation processes and bringing inflation back to target levels. Despite elevated price growth and high domestic demand, the central bank believes these conditions are necessary.

Future Rate Adjustments

Looking ahead, the Bank of Russia will assess the need for further rate hikes based on future lending and inflation dynamics. The bank emphasized that inflation expectations remain on the rise, indicating potential challenges in achieving their inflation targets.