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 achieve its inflation target of 4% by 2026. The central bank's decision reflects its ongoing battle against inflation, which has been a persistent challenge.

Inflation Forecast and Economic Outlook

Despite the high rates, the inflation forecast for 2025 remains unchanged, projected to be between 7% and 8%. The first quarter saw an average inflation rate of 8.3%, indicating the uphill battle the central bank faces.

Inflationary pressures are expected to decline in the coming months. However, elevated inflation expectations and a domestic demand that continues to outpace supply capabilities are slowing the pace at which inflation can decrease.

The economy, however, is showing signs of gradually returning to a balanced growth path, offering a glimmer of hope for future stability.