Russia maintains key interest rate at 7.5 pct

By Shi Hao
  • World
  • Saturday, 10 Jun 2023

MOSCOW, June 9 (Xinhua) -- The Bank of Russia on Friday decided to keep the key interest rate at 7.5 percent per annum amid growing inflationary pressure.

"Inflation expectations of households and businesses' price expectations remain high. Economic activity is rising faster than the Bank of Russia's April forecast assumed, which in large measure reflects a strong rebound in domestic demand," the central bank said in a press release.

Given the gradually rising inflationary pressure, the Bank of Russia stands open to increasing the key rate at its next meetings in order to stabilize inflation close to 4 percent in 2024 and beyond.

Russia drastically raised the key interest rate from 9.5 percent to 20 percent in February 2022 to support financial and price stability and protect the savings of citizens from depreciation, days after it launched a special military operation in Ukraine.

The Russian central bank began to slash the rate in April 2022, and the rate was gradually reduced to 7.5 percent in September that year.

Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Next In World

Mexico sees migrant 'crisis' at US-Mexico border as numbers spike
U.S. dollar ticks down
Elon Musk wades into German debate over migration
Suicide bomber kills at least 7 in Somali tea shop; al Shabaab claims responsibility
Albania GDP up 3.23 pct YoY in Q2: INSTAT
France's CPI to rise 4.9 pct in September
Blinken urges Indian cooperation in Canada's Sikh murder probe
Italy's inflation eases to 5.3 pct: ISTAT
UM consumer sentiment index falls in August
Armed militants withdraw from UN refugee schools in Lebanon

Others Also Read