Economics
Putin’s Central Banker Heads for New Term, Doesn’t Move Rate
- Decision leaves benchmark at 20%, in line with most forecasts
- Monetary policy takes backseat for economy jolted by sanctions
The headquarters of Bank Rossii, Russia's central bank, in Moscow.
Source: Bloomberg
This article is for subscribers only.
Russia’s central bank left interest rates at the highest in almost two decades, in a decision made hours after President Vladimir Putin proposed a third term for Governor Elvira Nabiullina.
Coming off an emergency rate hike just over two weeks ago, the Bank of Russia conceded the scale of damage to the economy after unprecedented sanctions over the invasion of Ukraine, warning that output will contract over the coming quarters and inflation won’t return to its 4% target until 2024.