Russia’s central bank has suspended its interest rate hike campaign, citing concerns over the economy overheating. The Central Bank of Russia (CBR) left its key interest rate unchanged at 21 percent, a decision made despite sharp criticism from businesses and politicians.
In October, the CBR had indicated that further rate hikes may be necessary to combat rising inflation. However, it has now decided to maintain the current level in order to avoid overcooling the economy.
“We need to let the overheating subside while avoiding an economic downturn,” said Governor Elvira Nabiullina. “We’re closely monitoring the situation to ensure a balanced approach.”
By suspending its interest rate hike campaign, the CBR aims to strike a balance between controlling inflation and preventing an economic slowdown.
Source: https://www.politico.eu/article/russia-central-bank-interest-rates-inflation-governor-elvira-nabiullina-political-opposition