Central Banks

Bank of Russia Approaches Hawkish Turn With Rates Held Again

  • Central bank leaves rate at 7.5%, in line with most forecasts
  • Spending surge, labor shortages are among threats to inflation
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Russia extended its interest-rate pause to the longest in more than seven years as the central bank becomes increasingly alert to inflation risks at a time of heavy government spending on the war in Ukraine.

Policymakers on Friday kept their benchmark at 7.5%, where it’s been since September, in a decision that matched the forecasts of most economists surveyed by Bloomberg. The central bank also delivered a hawkish message that signaled higher rates are probably on the way.