Bank of Russia keeps interest rates at 20%

At its meeting today, the Russian Central Bank left the key interest rate unchanged at 20 percent, after having previously raised rates sharply.

The central bank raised interest rates from 9.5% to 20% at its Feb. 28 meeting to stabilize the ruble after it fell to a record low. The ruble was hit by sanctions imposed by the U.S. and its allies in response to Russia’s military invasion of Ukraine.

The central bank expects the Russian economy to contract for several quarters and face high inflation. However, inflation is expected to slow to 4% in 2024, the central bank’s target level.

However, the ruble has recovered recently after losing a lot of value following the imposition of the embargoes, falling to 160 rubles per dollar. Currently, it is approaching the mark of 100 rubles per dollar.

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