Bank of Russia Maintains Key Rates at 21%

The Bank of Russia has decided to keep its key interest rates unchanged at 21%, a move aimed at tightening monetary conditions to combat inflation. The central bank's goal is to bring inflation down to its 4% target by 2026.

Inflation Forecast and Economic Outlook

With the inflation rate forecast for 2025 remaining between 7% and 8%, and an average of 8.3% in the first quarter, the Bank of Russia anticipates a gradual decline in inflationary pressures. However, elevated inflation expectations and a domestic demand that continues to outpace supply growth pose challenges to a swift reduction.

Path to Balanced Growth

Despite these challenges, the Russian economy is showing signs of moving towards a more balanced growth path. The central bank emphasizes the importance of maintaining current monetary policies to ensure long-term stability and growth.