Russian Central Bank keeps key interest rate at 7.50%

ANKARA

In line with market forecast, the Central Bank of Russia on Friday kept its key interest rate at 7.5% after cutting rates in its previous six meetings as consumer prices growth continue easing.

In September, Russia's annual inflation fell further to 13.7% from 14.3% in August, according to the latest data by the Federal State Statistics Service (Rosstat).

The bank expects annual consumer inflation to reach 12-13% at end-2022, then drop to 5–7% in 2023 and stabilize around 4% in 2024.

At its last meeting in September, the Bank of Russia cut the rate by 50 basis points to 7.5% from 8%, meaning that the key rate has been lowered by 1,250 basis points, or 12.5 percentage points, since February.

In February, the bank hiked the key interest rate from 9.5% to 20% in a dramatic move amid sanctions due to Russia's war on Ukraine.