Russia Keeps Interest Rate Unchanged

(RTTNews) - The Bank of Russia left its benchmark interest rate unchanged for the second straight meeting, on Friday.

The Board of Directors decided to hold the key rate at 14.00 percent, as widely expected.

The bank has reduced the rate by 200 basis points so far this year.

The board observed that underlying price growth has not yet decreased and remained in the range of 5-6 percent.

Annual inflation hit 6.8 percent as of October 19, the bank said. Inflation is forecast to rise to 7.1-7.6 percent as of the end of 2026.

High inflation expectations impede a slowdown in inflation, the board noted.

The bank's baseline scenario assumed that the key interest rate will average 12.5-13.5 percent per annum in 2027. Given the monetary policy stance, inflation is forecast to return to 4.0 percent next year and stay on target further on.