The Central Bank of Russia has decided to maintain the key rate at 7.5% per year. This is the fifth time in a row that this has happened.
As reported on the Central Bank’s website, since the end of 2022, the rate of price growth has increased, but they remain at a moderate level. Inflation expectations have declined. At the same time, economic activity came in above the bank’s forecast in February, indicating an increase in domestic demand.
“In general, the balance of inflation risks has not changed significantly since the previous meeting of the Board of Directors of the Bank of Russia,” the message on the Central Bank’s website reads.
Further decisions on the policy rate will be made taking into account the dynamics of inflation, taking into account the risks associated with internal and external conditions, as well as the reaction of the financial markets to them.
Earlier, Central Bank Director Elvira Nabiullina said Russia has a “safety cushion” in assets that are not subject to sanctions. These reserves are built up based on assets that cannot be used to put pressure on the country.
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