Economics

Russia Plays It Safe on Rates After Sanctions Threats Hit Ruble

  • Inflation may temporarily top central bank’s 4% target
  • Majority of economists in a survey expected the decision
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Bank of Russia Governor Elvira Nabiullina kept rates on hold for the second policy meeting in a row, taking a cautious stance while leaving the door open to renewed easing once the U.S. presidential vote has passed.

The benchmark interest rate was left at 4.25%, according to a central bank statement on Friday. The decision was forecast by 34 out of 40 economists in a Bloomberg survey, with the rest expecting a 25 basis-point reduction.