Russia's Central Bank keeps key rate

The Russian Central Bank has kept its key rate once again, though it holds open the prospect of increasing it at the upcoming meeting, the bank's press service said.

"On 7 June 2024, the Bank of Russia Board of Directors decided to keep the key rate at 16.00% per annum," the report reads.

It was noted that the current price growth rate has stopped decreasing and remains close to the levels of 2024 Q1. Growth in domestic demand is still outstripping the capabilities to expand the supply of goods and services.

"The Bank of Russia holds open the prospect of increasing the key rate at its upcoming meeting," the regulator said.

According to the bank, returning inflation to the target will require a significantly longer period of maintaining tight monetary conditions in the economy than it was forecast in April.