Central Bank of Russia keeps key rate at 21% per annum, as expected

MOSCOW. April 25 (Interfax) - The Central Bank of Russia's board of directors has decided for the fourth consecutive meeting to maintain the key rate at 21% per annum.

This decision was in line with analysts' expectations.

"Current inflationary pressures, including underlying ones, continue to decline, although remaining high. Domestic demand growth is still significantly outstripping the capabilities to expand the supply of goods and services. Nevertheless, according to high-frequency data, the economy began to gradually return to a balanced growth path," the CBR said in a press release following the board meeting.

Further decisions regarding the key rate will depend on the pace and sustainability of inflation and inflation expectations declining.

The CBR had kept the rate at 16% for four consecutive meetings after raising it by 100 basis points on December 25 last year from 15%. It then increased the rate to 18% on July 26, followed by a hike to 19% on September 13, and then to 21% on October 25 with a 200 basis point increase. At the meeting on December 20, 2024, the decision was made to keep the rate at that level, although most analysts had expected an increase. The rate remained unchanged again on February 14 and March 21.

The next meeting of the CBR board of directors on the key rate will take place on June 6.