The Bank of Russia announced on Friday the decision to leave its key interest rate unchanged, leaving the benchmark rate at 7.50%.
According to the statement released by the institution, economic activity in the country is "growing faster than expected," reflecting an upsurge in domestic demand amid "the ongoing processes of adaptation of the Russian economy." Inflation is predicted to be between 4.5–6.5% in 2023 and will return to 4% in 2024. The Bank of Russia projects that the GDP growth rate in 2023 will be 0.5–2.0% and 0.5–2.5% in 2024.
"In the context of a gradual increase in current inflationary pressures, the Bank of Russia will assess the feasibility of raising the key rate at its next meetings to stabilize inflation close to 4% in 2024 and beyond," concluded the statement.
