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Bank of Russia Warns on Inflation Risks As It Holds Rates

  • Forecast for year-end inflation increased to 4.6%-4.9%
  • Monetary policy will still remain accommodative next year
Updated on

The Bank of Russia warned growing risks of higher inflation may leave no room for further monetary easing after it kept the key rate unchanged at a third consecutive policy meeting.

The key rate was kept at 4.25% on Friday, the lowest level on record, after 200 basis points of cuts earlier this year. The central bank left the door open to further monetary easing, but altered the language in the statement to suggest there may not be any further reductions. Russian government bonds fell for the first time in four days.