The Central Bank kept the key rate at 16%

The Central Bank kept the key rate at 16% per annum and did not raise it for the first time since June.

Before that, it was increased five times in a row — by only 850 basis points. In December, it was increased from 15% to 16%.

At the first meeting in 2024, the Bank of Russia decided to keep the key rate at 16% per annum, indicating that it was premature to judge the stability of the emerging disinflationary trends.

Indicators of inflationary pressure do not yet allow the regulator to move to a rate cut, according to the press service of the Central Bank. In order to achieve a steady decline in consumer price growth, a prolonged period of maintaining tight monetary conditions in the economy is necessary, the Central Bank noted.

According to the forecast of the Central Bank, taking into account the monetary policy, annual inflation in 2024 will decrease to 4.0-4.5% and will be near 4% in the future.