Russia’s Central Bank has kept its key rate at 7.5% per annum for the fourth time running, noting the rate increase possibility should pro-inflation risks intensify, according to a statement released by the regulator on Friday, Trend reports with reference to TASS.
"The Bank of Russia Board of Directors decided to keep the key rate at 7.50% per annum. Current rates of price growth remain moderate, including in the stable components of inflation. Inflation expectations of households are down significantly but remain elevated, as do businesses’ price expectations. High-frequency data suggest that a recovery in business and consumer activity is ongoing," the statement reads.
Accelerating fiscal spending, deteriorating terms of foreign trade and the situation in the labor market continue to pose pro-inflation risks, the regulator said.
Moving forward, in its key rate decision-making the Bank of Russia will take into account actual and expected inflation dynamics relative to the target and economic transformation processes, as well as the risks posed by domestic and external conditions and the reaction of financial markets. If pro-inflation risks intensify, the Bank of Russia will consider the necessity of key rate increase in the key rate at its upcoming meetings.
The next rate review meeting is scheduled for April 28, 2023.