The Central Bank of Russia decided on Monday to maintain its key policy rate at current levels based on expectations of continued inflation risks.
The bank held its benchmark one week minimum auction repo rate at 5.5 percent, leaving rates unchanged for 13 months in a row.
"The central bank likes the fact that inflation is gradually falling, but it isn't yet sure that it is falling enough to guarantee meeting its target for 2014," Vladimir Kolychev, the chief economist at VTB capital, said, according to Reuters.
The bank said consumer price inflation had fallen to 6 percent as of Oct. 7, the top of its 5-6 percent target range for 2013.
"The dynamics of the key macroeconomic indicators suggested that the page of economic growth remained low. Production activity and investment demand remained subdued. Producer confidence indicators continued to deteriorate," the bank said. "The Bank of Russia will continue to monitor inflation risks and the downside risks to economic growth. In making monetary policy decisions, the Bank of Russia will be guided by the inflation goals and economic growth prospects."
The next meeting of the Board of Directors on monetary policy issues is scheduled for Nov. 8.
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