Central Banks
Russia Pauses Rate Cuts as War Call-Up Stirs Economic Angst
- Central bank keeps benchmark at 7.5% after six cuts in a row
- Mobilization adding to uncertainty amid higher inflation risks
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Russia’s central bank held interest rates for the first time since the immediate aftermath of the attack on Ukraine, as risks of higher inflation intensify following the Kremlin’s call-up of reservists to fight in the war.
Policy makers led by Governor Elvira Nabiullina left the benchmark at 7.5% after six cuts in a row, in line with the forecasts of most economists surveyed by Bloomberg. Bloomberg Economics expects the key rate to stay unchanged into the first quarter of 2023.