Russia’s Central Bank left interest rates unchanged at its policy meeting on Monday, maintaining its key refinancing rate at 8 percent, the bank said.
The decision was made after an analysis of inflationary risks and the prospects for economic growth, the regulator said in a statement.
“The annual inflation rate stayed low at 3.7 percent in March while core inflation slowed to 5.5 percent,” the bank said. “These trends are expected to be short-lived, while medium-term inflationary risks are intensified by uncertainty about the…increase in most administered prices and tariffs scheduled for July…on consumer prices.”
Russia’s macro-economic performance in February points to some improvement in the economic situation. Industrial output accelerated and fixed capital investment continued to grow at a high annual rate.
Real wage and household lending dynamics and low unemployment level create favorable conditions for stable consumer demand, the bank said.
“Considering the current internal and external macro-economic trends developing within the interest rate band, the level of money market rates is considered as acceptable in the coming months,” the bank said.