Russia’s central bank unexpectedly held its key interest rate steady at 21% on Friday, citing tighter monetary conditions that could help curb inflation. The bank highlighted that recent autonomous factors had cooled credit activity and raised borrowing costs, creating a foundation for disinflation. This decision defied market expectations of another 200-basis-point rate hike. Annual inflation reached 9.5% in December, over twice the central bank’s 4% target. Rising food prices, particularly dairy products, have been key drivers. Russian President Vladimir Putin acknowledged inflation as an "alarming signal" during his annual Q&A session but emphasized wage and income growth.
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00:00It's Benzinga, bringing Wall Street to Main Street.
00:02Russia's central bank unexpectedly held its key interest rate steady at 21% on Friday,
00:07citing tighter monetary conditions that could help curb inflation.
00:11The bank highlighted that recent autonomous factors had cooled credit activity and raised
00:16borrowing costs, creating a foundation for disinflation. This decision defied market
00:20expectations of another 200 basis points rate hike. Annual inflation reached 9.5% in December,
00:27over twice the central bank's 4% target. Rising food prices, particularly dairy products,
00:32have been key drivers. Russian President Vladimir Putin acknowledged inflation
00:36as an alarming signal during his annual Q&A session, but emphasized wage and income growth.