Russia Poised to Pause Rate Cuts Amid Growing Inflation Risk

The Bank of Russia may hold off lowering its key interest rate as recent tax hikes pose a fresh threat to achieving policymakers’ long-sought inflation target.

Even as the economy comes under increasing strain from high borrowing costs, the central bank is expected to leave the benchmark rate unchanged at Friday’s meeting after five straight cuts last year. Only two of eight economists surveyed by Bloomberg forecast a 50 basis-point reduction from the current 16% level.