Stable Rates Amid Inflation Targets

In a decisive move, the Bank of Russia has announced the retention of its key interest rates at a steep 21%. This decision underscores the bank's commitment to stringent monetary policies aimed at steering inflation back to the coveted 4% mark by 2026.

Inflation Forecasts and Economic Indicators

The inflation outlook for 2025 remains unchanged, with projections hovering between 7% and 8%, mirroring last month's forecasts. The first quarter saw inflation averaging at 8.3%, signaling persistent pressures.

Challenges Ahead

Despite expectations of a gradual decline in inflationary pressures, elevated inflation expectations loom large, potentially slowing the pace of decrease. The central bank also highlights a growing disparity between domestic demand and the capacity to augment the supply of goods and services, even as the economy inches towards a more balanced growth trajectory.