Russia keeps interest rate constant at 21%

By Gokhan Ergocun

ISTANBUL (AA) - The Bank of Russia has kept its key interest rate unchanged at 21% on Friday, in line with market expectations.

In a statement, the bank said: "Current inflationary pressures have decreased but remain high, especially underlying ones.

"Domestic demand growth is still significantly outstripping the capabilities to expand the supply of goods and services."

According to the bank’s forecast, annual inflation will decline to 7-8% in 2025, and return to 4% in 2026.

The Bank of Russia expects that inflationary pressures will continue to decline in the coming months. "This will be supported by a cooldown in lending and high saving activity."