Attacks in Russia Stoke Inflation Risks After Election
- Fuel and food prices could rise after strikes on border areas
- Economists see central bank holding benchmark steady at 16%
This article is for subscribers only.
Attacks on Russian regions bordering Ukraine have left the central bank very little room to deviate from their current hawkish position Friday, as the consequences from the strikes threaten to renew inflation risks.
For the second meeting in a row, there is a unanimous consensus among economists surveyed by Bloomberg that the key interest rate will remain unchanged at 16%. Some of those surveyed believe that even signs of slowing price growth this month and lower inflation expectations among the population won’t bring the start of an easing cycle any closer.