Russian central bank signals flexibility on rates amid inflation risks

Russian central bank signals flexibility on rates amid inflation risks

• The Russian central bank may cut rates if inflation slows, but could also hold at 18% through year-end due to geopolitical risks.

• A central bank official told a Russian newspaper that the key rate may fall further this year if inflation slows quickly.

• The central bank’s forecast does not rule out keeping the rate at 18% until the end of the year.

• The bank warned that pro-inflationary risks from geopolitics remain.