(MENAFN) In response to persistently high inflation levels exacerbated by Western sanctions imposed due to the ongoing conflict in Ukraine, the Russian Central Bank announced on Friday its decision to maintain the key interest rate at 16 percent. This decision marks a continuation of the aggressive monetary policy stance adopted by the Central Bank, which initially raised the main interest rate to 16 percent in December. This move represents the fifth consecutive increase since July, aimed at curbing inflationary pressures that have significantly impacted the purchasing power of Russian citizens.
In a statement issued on Friday, the Russian Central Bank acknowledged that while current inflationary pressures are gradually subsiding, they still remain at elevated levels. The Bank emphasized the importance of its monetary policy in consolidating efforts to reduce inflation within the national economy. However, it cautioned that it is premature to assess the pace at which deflationary trends may manifest in the future, highlighting the continued uncertainty surrounding inflationary risks.
The statement further underscored the Central Bank's commitment to maintaining a vigilant approach to monetary policy, particularly in light of the ongoing geopolitical tensions and economic repercussions resulting from the conflict in Ukraine. With inflationary pressures expected to persist in the medium term, the Central Bank remains focused on implementing measures aimed at mitigating risks and fostering economic stability in Russia.
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