Russia's central bank kept its key interest rate at 20% on Friday following last month's massive emergency hike and said it would start buying OFZ government bonds, warning of an imminent spike in inflation and a looming economic contraction.
Bank of Russia policymakers held a scheduled rate meeting after more than doubling the key rate to 20% from 9.5% in a one-off action on Feb. 28 to support financial stability and shore up the rouble. The currency had crashed to record lows as Western countries imposed sanctions against Russia over its actions in Ukraine.
Governor Elvira Nabiullina, who was nominated for a third term by President Vladimir Putin earlier on Friday, said the central bank will start buying OFZs on the market when the Moscow Exchange resumes trading of the bonds on Monday.
Yahoo Finance