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Russia Keeps Rates Stable

Russia Keeps Rates StableRussia Keeps Rates Stable

The Russian Central Bank has decided to hold its key interest rate unchanged at 7.25%, the bank said in a statement late Friday, World Bulletin reported. The annual inflation rate remains low, according to a statement from the bank. The decision was made due to growing risks of rise in inflation because of geopolitical factors, it said. “Geopolitical factors and accelerated yield growth in advanced economies may cause surges in volatility in financial markets and affect expectations for the exchange rate and inflation,” the statement said. In early April, the US put new sanctions against Russia resulted in ruble weakening and market losses. Since then the ruble has lost more than 10% of its value. The Russian central bank has previously said the World Cup (from June 14 to July 15) would bring a small boost to the Russian economy but also warned that the tournament could lead to an increase in consumer prices.

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