Russian Central Bank holds interest rates constant at 16%

By Tuba Ongun

The Central Bank of Russia on Friday left its key interest rate unchanged at 16% for the fifth consecutive meeting, in line with the market forecast.

The bank said it may raise the key rate in its upcoming meeting.

It stressed that the current price growth has stopped easing and domestic demand continues to outstrip the Russian economy's capabilities to expand the supply of goods and services.

According to the latest data, Russia's annual consumer inflation rate ticked up to 7.8% in April from 7.7% in March.

The bank will maintain tight monetary conditions for a longer time than expected in a bid to return inflation to the target.

Annual inflation is forecast to return to the target in 2025 and stabilize close to 4% further on.