The Central Bank is likely to keep interest rates on hold on Wednesday, before its new head takes office, caught between stubbornly high inflation and a slowing economy.
The bank has come under political pressure to cut lending rates to boost economic growth, which has slowed sharply in recent months and came to just 1.1 percent in the first quarter.
The central bank may set a more "dovish," or expansionary, monetary course when Kremlin economic aide Elvira Nabiullina, a trusted adviser to President Vladimir Putin, takes over next month.
But a majority of analysts believe the bank will stay its hand this month, in line with its key policy objective of reducing inflation.
"We believe inflation remaining above the target is an overwhelming reason for the [Central Bank] to keep its key policy parameters unchanged," Vladimir Pantyushin, an economist at Barclays Capital, said before the monthly meeting.
(Reuters)
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
