Russian Central Bank maintains key rate at 20%

By Elena Teslova

MOSCOW (AA) - The Russian Central Bank decided on Friday to keep its key interest rate unchanged at 20%, in line with the market forecast.

"On March 18, 2022, the Board of Directors of the Bank of Russia decided to keep the key rate at 20% per annum," the bank said in a statement.

"In the situation of radically changed external conditions, a sharp increase in the key rate by the Bank of Russia on February 28 supported financial stability and prevented uncontrolled price growth," it added.

The bank said it would make future decisions related to the key rate considering inflation expectations, the state of economic development, internal and external risks, and "the reaction of financial markets to them."

On Feb. 28, the bank raised the key rate from 9.5% to 20% amid economic sanctions imposed on Russia due to its war with Ukraine.