Russia Holds Interest Rates Unchanged at 16% amid Inflation Fears

The Central Bank of Russia left interest rates unchanged on Friday, as part of its attempts to address inflation risks, which have recently increased amid Ukraine's intensification of its attacks.

The key interest rate remained at 16% for the second meeting in a row, in line with the middle forecast of economists polled by Bloomberg. Central Bank Governor Elvira Nabiullina will comment on the decision at a press conference scheduled to be held at 3 p.m. Moscow time.

The central bank did not provide any guidance on the likely direction of interest rates over the coming months, in a repeat of what it did after last month's meeting.

The bank said in a statement accompanying the decision: “In the medium term, the balance of inflation risks still tends towards the upward direction. In order for it to return to its target level in 2024 and stabilize near 4%, the monetary tightening policy must be maintained for a long period.”