The Russian Central Bank keeps interest rates unchanged.

The Central Bank of Russia decided on Friday morning to keep the main interest rates in the country unchanged during the February meeting, maintaining the main interest rate at 21% for the second consecutive meeting.

In its monetary policy report, the Central Bank of Russia indicated that it expects the annual inflation rate in Russia to slow down to between 7% and 8% by 2025, before declining further to the Central Bank's target of 4% in 2026, remaining at this level for an extended period.

The Central Bank emphasized that the labor market remains strong, noting that unemployment continues to be at record low levels, which forms a basis for the gradual return of the economy to balanced growth.

At the same time, the bank's report added that the Russian economy has seen an expansion of 4.1% during 2024, attributing the strong growth to a significant increase in domestic demand.

Regarding future movements, the Central Bank of Russia stated that it will assess the need to raise the main interest rate in its next meeting, taking into account the speed and sustainability of the inflation slowdown.