Economics
Russia Extends Rate Pause as Risks to Inflation Halt Easing
- Benchmark kept at 7.25% for third meeting, in line with survey
- Central bank stays just a step short of level deemed ‘neutral’
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Russia’s central bank kept interest rates unchanged for a third consecutive meeting and warned that external risks and the highest inflation expectations in almost a year mean monetary easing probably won’t resume until 2019.
The benchmark was held at 7.25 percent, according to a statement on Friday. The decision was forecast by all 37 economists surveyed by Bloomberg. The central bank said the balance of risks has become pro-inflationary, making it “highly likely” that its policy will shift to a neutral stance only next year, a transition it previously wanted to complete in 2018.