Russia's central bank has disclosed the country's annual inflation level and left its key rate at 14%, according to Банки Юга.ру. The rate decision, reported on Sunday, marks the first time in roughly eighteen months that the regulator has not lowered the benchmark, Forbes.ru reports.
The central bank's move ends a prolonged easing cycle. Forbes.ru described the decision as a pause and examined why the regulator chose to hold and whether the break could last. Банки Юга.ру also reported that Nabiullina identified the main threat facing the Russian economy, without specifying further in the summary.
Coverage of the decision pointed to pressure from fuel prices and a weaker ruble. dp.ru reported that gasoline was becoming more expensive and the ruble was losing ground, framing both as reasons the central bank interrupted its series of rate cuts. Новые Известия looked at the consequences for borrowers and savers, publishing an assessment of what the 14% rate means for loans and deposits.
The regulator's inflation disclosure and the rate hold arrive together, tying the cost of credit to the pace of price growth. The central bank has not signaled in the available reporting how long it intends to keep the rate at its current level.
What to watch next: whether the central bank resumes cutting at its following meeting, and how inflation, the ruble and fuel prices move in the meantime.
