The Russian central bank has kept the key interest rate in the country unchanged at 7.5 percent. According to the central bank, inflation appears to be slowing and will reach between 12 and 13 percent by the end of this year.
After the first sanctions by the invasion of Ukraine, the bank raised interest rates sharply to 20 percent and then cut them again in significant steps. This is the first time the rate has remained the same in recent months.
The Russian central bank expects an economic contraction of 3 to 3.5 percent for this year.
According to a statement, since the partial mobilization, Russians are increasingly inclined to save rather than spend, resulting in less spending. According to the central bank, calling up Russian men for the army also puts pressure on the labour market.