Bank of Russia left key rate at 16% for third time

The Bank of Russia left the key rate at 16% per annum for the third time.

The Central Bank said that “on April 26, 2024, the Board of Directors of the Bank of Russia decided to leave the key rate at 16% per annum.”

The current economic landscape influences the Bank of Russia's decision to maintain the key rate. While inflation pressures are gradually easing, they remain high. The continued increase in domestic demand, which surpasses the capacity for supply expansion, is expected to slow down the return of inflation to the target, a scenario that the Bank of Russia predicted in February.

The Bank of Russia's last rate increase occurred at its final meeting in December 2023. On December 15, the key rate was increased by one percent to 16% per annum.

Author: Sergey Nikolaev