Russia holds interest rates at 8.25, hinting of approaching cuts
AFPMOSCOW -- Russia's central bank held the main interest rate at 8.25 percent for the 11th month running on Friday while leaving the way open for future cuts on easing concern about inflation.
August 10, 2013, 12:08 am TWN
The decisions surprised analysts who had predicted the start of a monetary easing policy amid Russia's slowest growth rates since the 2008-2009 global financial crisis.
The central bank — led since June by President Vladimir Putin's close ally Elvira Nabiullina — has been grappling with the dilemma of anemic growth and inflation that has outpaced the year's 5- to 6-percent target.
But inflation slowed to 6.5 percent in July from 6.9 percent in June — a positive trend that the central bank underscored on Friday.