Bank of Russia Maintains Key Rates at 21%

The Bank of Russia has decided to keep its key interest rates steady 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, despite current challenges.

Inflation Forecast and Economic Outlook

With inflation averaging 8.3% in the first quarter, the bank's forecast for 2025 remains unchanged, predicting rates between 7% and 8%. Inflationary pressures are expected to decline, yet elevated inflation expectations and rapid domestic demand growth pose significant hurdles to achieving a more balanced economic growth path.