By Paul Hannon

Russia's central bank left its key interest rate unchanged for the sixth straight policy meeting Friday, and repeated its warning that it may tighten policy if the war in Ukraine threatens to drive inflation higher.

The Bank of Russia left its key interest at 7.5%. The lengthening period of steady rates follows a series of cuts that more than reversed a doubling of the key rate in the immediate aftermath of Russia's invasion of Ukraine more than a year ago.

The central bank again warned that an intensifying shortage of workers and higher government borrowing as the war extends into a second year pose a twin threat to consumer prices. It said the risk that inflation could rise back above its target had increased since its last meeting.

"Given gradually rising inflationary pressures, the Bank of Russia holds open the prospect of increasing the key rate at its next meetings," the central bank said.

Write to Paul Hannon at paul.hannon@wsj.com

(END) Dow Jones Newswires

June 09, 2023 06:59 ET (10:59 GMT)