Russia’s central bank unexpectedly held its key interest rate steady at 21% on Friday, citing tighter monetary conditions that could help curb inflation. The bank highlighted that recent autonomous factors had cooled credit activity and raised borrowing costs, creating a foundation for disinflation. This decision defied market expectations of another 200-basis-point rate hike. Annual inflation reached 9.5% in December, over twice the central bank’s 4% target. Rising food prices, particularly dairy products, have been key drivers. Russian President Vladimir Putin acknowledged inflation as an "alarming signal" during his annual Q&A session but emphasized wage and income growth.
