Economics
Russia Ditches Rate Cuts as Recovery Adds to Inflation Pressures
- Disinflationary risks no longer prevail over one-year horizon
- Bank raises inflation forecast for this year to 3.7%-4.2%
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The Bank of Russia ended its monetary easing cycle as signs of a rebound from the pandemic added to inflationary pressures. Interest rates were kept on hold for a fourth straight policy meeting.
“The potential for easing monetary policy has been exhausted,” Governor Elvira Nabiullina said at news briefing on Friday, adding that the central bank didn’t consider any option other than holding rates. “Policy will remain accommodative in 2021 to support the economy.”