Bank of Russia kept key rate at same level

The Bank of Russia kept the key rate at 16%. Before that, it was raised five times in a row - by only 850 points. In December it was increased from 15% to 16%.

The release reports that the Board of Directors of the Bank of Russia, on February 16, 2024, decided to maintain the key rate at 16% per annum. Current inflation pressures have eased compared to the autumn months but remain high. Domestic demand continues to significantly outstrip the possibilities for expanding the production of goods and services. It is premature to judge the sustainability of the emerging disinflationary trends. The monetary policy pursued by the Bank of Russia will consolidate the process of disinflation in the economy.

Author: Sergey Nikolaev