The Bank of Russia unexpectedly decided to keep the key interest rate unchanged at 21%. Governor Elvira Nabiullina explained the decision during a press conference.
Key Rate Decision
According to Nabiullina, the Central Bank considered three options: keeping the rate at 21%, raising it to 22% or to 23%. It was decided that maintaining the rate is a stronger signal for the economy, especially in light of slowed credit growth.
Ruble Exchange Rate Stance
Addressing the ruble's performance, Nabiullina emphasized Russia's adherence to a floating exchange rate policy without aiming to maintain the ruble at any specific level. However, currency interventions could occur if financial stability risks arise.
Cryptocurrency Position
Nabiullina reaffirmed the Central Bank's cautious stance on cryptocurrencies, distinguishing their domestic use from international cases. She supports projects involving cryptocurrencies for external payments but opposes their use within Russia's domestic financial system.
Thus, the Central Bank continues to steer its policy towards economic stability through flexible key rate management, maintaining a floating exchange rate, and a strict stance on cryptocurrencies.
