Economics
Russia Pauses Rate Hikes But Warns Further Tightening Possible
- Benchmark kept at 7.5%, in line with most forecasts in survey
- Risk of U.S. sanctions, domestic factors threatening inflation
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Russia’s central bank kept borrowing costs unchanged, pausing after a surprise hike last month but warning that inflation risks may prompt more tightening.
“Pro-inflationary risks remain elevated, especially over a short-term horizon,” it said in a statement on Friday. “The Bank of Russia will consider the necessity of further increases in the key rate, taking into account inflation and economic dynamics against the forecast, as well as risks posed by external conditions and the reaction of financial markets.”