The Russian Central Bank (BCR) announced on Friday that it would once again maintain its key rate at 7.50%, as since last September, in line with market and analyst expectations.
Thanks to relatively stable macro-economic indicators, the key rate thus remains at the level announced last autumn, far from the peak reached just after the launch of the military intervention in Ukraine.
In the crowd of the first international sanctions, the Russian Central Bank had drastically raised its rate to 20%, before making several cuts, reassured by the resilience of the Russian economy.
The markets said they had been betting for several days on maintaining the key rate at 7.50%.
In its press release, the BCR justified its decision in particular by explaining that economic activity is progressing faster than assumed in the April forecasts (…), which largely reflects a strong rebound in domestic demand , despite still difficult external conditions.
The BCR was also delighted to see inflation come down to 2.3% last April, and maintained its inflation forecasts for this year: (it) will reach 4.5 to 6.5% in 2023 to return to 4 % in 2024.
Russia was targeted by an unprecedented wave of Western sanctions after the launch of its offensive in February 2022.