Macro Analysis /
Russia

Russian central bank keeps policy rate unchanged at 20%

  • The CBR kept its key policy rate unchanged at 20%

  • Inflation reported at 5.6% YTD as of 11 March

  • Capital controls help to keep ruble exchange rate stable

Natalia Orlova
Natalia Orlova

Chief Economist

Alfa
18 March 2022
Published by

The CBR kept its key policy rate unchanged at 20%: The CBR announced the key policy rate will stay unchanged at 20% where it was moved to on 28 February. We fully agree with this decision as inflationary shock is related to disruptions in foreign trade and financial flows and is non-monetary in nature. An additional rate hike would deepen the economic recession and destabilize economic sentiment. In a way, keeping rate unchanged is a way for the CBR to indicate that the situation is under control.