Russian Central Bank May Pause After Surprise Rate Increase

Russia signaled it may leave interest rates unchanged for several months after tightening monetary policy since December to balance accelerating inflation with slowing economic growth.

Bank Rossii, the central bank, yesterday raised its overnight deposit rate to 3.5 percent from 3.25 percent, surprising 11 of 20 economists in a Bloomberg survey. It left the refinancing and overnight repurchase rates unchanged after a quarter-point increase in April, saying in a statement that borrowing costs may be at the level necessary to tackle inflation and promote growth “for the nearest months.”