Russia's Central Bank Leaves Key Rate Unchanged, Warns On Future Rise
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
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 email@example.com
(END) Dow Jones Newswires
June 09, 2023 06:59 ET (10:59 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.