The Bank of Russia once again decided to maintain the key rate at 16% per annum at its second meeting in 2024, the regulator said in its press release.
"Current inflationary pressures are gradually easing but remain high. Domestic demand is still outstripping the capabilities to expand the production of goods and services. Labor market tightness has increased again," the statement reads.
The Bank of Russia’s monetary policy is set to solidify disinflation processes unfolding in the national economy
The Bank of Russia noted that returning inflation to the target level and its stabilization near 4% implies a long period of tight monetary conditions in the economy.
"The return of inflation to target in 2024 and its further stabilization close to 4% assume that tight monetary conditions will be maintained in the economy for a long period," the bank said.
According to the regulator's estimates, the annual inflation rate remains at the level of February and amounted to 7.7%, according to estimates as of March 18.
The Russian economy continued to grow actively in the Q1 of 2024, the regulator added.
