17 Mar 2023 13:45

CBR holds key rate at 7.5% for fourth consecutive time

MOSCOW. March 17 (Interfax) - The Board of Governors of the Central Bank of Russia (CBR) decided at a meeting on Friday to hold its key rate at 7.5% per annum, the regulator said in a statement.

This is the fourth consecutive time the Central Bank has kept the rate at this level after lowering it from 8% per annum on September 16.

"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. Accelerating fiscal spending, deteriorating terms of foreign trade and the situation in the labour market continue to pose pro-inflation risks. The overall balance of inflation risks has remained essentially the same since the previous Board meeting," the CBR said.

Moving forward, in its key rate decision-making the regulator 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.