Russia’s central bank governor Elvira Nabiullina – at an event in St. Petersburg in June
Image: AFP
The central bank has been instrumental in limiting the economic impact of the Ukraine conflict and Western sanctions against Russia. The key interest rate is currently 7.5 percent.
RUss’s central bank has put interest rates on hold after a series of monetary easing measures. It left the key interest rate at 7.5 percent on Friday. This was not unexpected for experts after central bank chief Elvira Nabiullina had recently signaled a possible pause. According to the central bank, the domestic economy lost significant momentum after the partial mobilization at the end of September for the war against Ukraine. From the point of view of the currency watchdogs, this should have a dampening effect on inflation in the coming months, but then possibly heat up prices again.
The central bank has been instrumental in limiting the economic impact of the Ukraine conflict and Western sanctions against Russia. It initially raised its key interest rate to 20 percent, but then lowered it six times in a row to the pre-crisis level of 7.5 percent.
According to the Russian Ministry of Economic Affairs, the inflation rate was 12.9 percent. The central bank is aiming for a value of four percent. At the same time, she points out that the inflation expectations of consumers and in the economy have increased slightly compared to the summer months. The next interest rate decision is scheduled for December 16th.