Central Bank Holds Interest Rate Steady Amid Inflation Concerns

Russian Central Bank Governor Elvira Nabiullina has projected a decrease in inflation starting May, following a peak in the fourth quarter. Despite the optimistic outlook, Nabiullina emphasized the importance of maintaining a cautious approach to monetary policy.

"We passed the peak in the fourth quarter... But the turning point and the transition to a decline in annual inflation, in our opinion, will occur in May," Nabiullina stated during a press conference in Moscow. She also warned of a potential temporary increase in inflation come July.

The announcement came after the bank decided to keep its key interest rate unchanged at 21%, a move aimed at stabilizing the economy amidst fluctuating inflationary pressures.