Russia Holds Key Interest Rate at 21% Amid Inflation Concerns

Russia’s central bank has kept its key interest rate unchanged at 21% for the fourth consecutive meeting, the highest since the Ukraine invasion began. The decision reflects ongoing concerns about high inflation, which is starting to decline but remains a significant challenge due to factors such as the war in Ukraine and global economic instability. The ruble’s recent appreciation has helped slow price growth, but the central bank warns that new risks, particularly from U.S. trade tariffs and lower oil prices, could again fuel inflation through currency fluctuations. Analysts note that while economic activity is slowing and credit-driven consumption has decreased, the bank expects inflation to ease gradually if no new shocks occur. Despite sanctions and falling oil revenues, Russia’s economy has been more resilient than expected since the start of the Ukraine conflict, though it now faces a potentially prolonged period of economic uncertainty.