Surprise Steady Interest Rate by Russian Central Bank

The Russian central bank defied expectations by maintaining its key interest rate at 21%. Despite market predictions of an increase, the bank believes current conditions can steer inflation towards its 4% target. Discussions for potential rate adjustments are set for February 14.

In a surprising move, the Russian central bank announced that it would maintain its key interest rate at 21%, defying market analysts who anticipated a 2 percentage point hike. This decision comes amid the bank's recent efforts to tighten monetary conditions.

The central bank stated that the current tightness in monetary policy was sufficient to encourage disinflation and guide inflation back to its 4% target. The bank's evaluation of a possible rate increase will be reviewed at its next meeting scheduled for February 14.

President Vladimir Putin, during a nationwide phone-in, had previously advised the central bank to ensure a 'balanced' approach. Despite this, most experts, according to a Reuters poll, had projected a hike to 23%.

(With inputs from agencies.)