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CBR Keep Key Rate Unchanged at 7.5%, As Expected

RUSSIA

Highlights from policy statement:

  • The medium-term balance of risks has not significantly changed, remaining tilted towards pro-inflation risks.
  • High and unanchored inflation expectations, which are particularly sensitive to exchange rate fluctuations, are also a source of risk
  • If pro-inflation risks intensify, the Bank of Russia will consider the necessity of key rate increase at its upcoming meetings.
  • According to the Bank of Russia’s forecast, given the monetary policy stance, annual inflation will come in at 5.0–7.0% in 2023 to return to 4% in 2024.
  • See full statement here: https://www.cbr.ru/eng/press/pr/?file=17032023_133...

Nabiullina’s press conference follows at 1200GMT/1500 local time.

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