Russian Central Bank leaves interest rates unchanged

By Tuba Ongun

Russia’s central bank kept its key interest rate constant at 16% on Friday, broadly meeting the market forecast.

The bank stressed that current inflationary pressures have eased compared with the fourth quarter of last year, with the latest data pointing that the annual inflation rate was at 7.4% as of Feb. 12.

The bank now estimates the annual inflation decline to 4-4.5% this year and will stabilize close to 4% further on.

"The return of inflation to target in 2024 and its further stabilization close to 4% assume that tight monetary conditions will be maintained in the economy for a long period," it added.