The Bank of Russia has kept the key rate at 21% at its latest meeting on Friday. Earlier, many economists also assumed that the Central Bank would decide to maintain the current key rate.
"Current inflationary pressure, including persistent factors, continues to decrease, although it remains high. The growth of domestic demand still significantly outpaces the ability to expand the supply of goods and services. At the same time, according to operational data, the economy has begun to gradually return to a trajectory of balanced growth," the Central Bank's press release notes.
The bank noted that further decisions on the key rate will be made depending on the speed and sustainability of the decline in inflation and inflation expectations. Under the baseline scenario, this implies an average key rate in the range of 19.5–21.5% per annum in 2025 and 13.0–14.0% per annum in 2026.