Daily Times

MOSCOW: Russia’s central bank on Friday held its lending rate at 10.5 percent as inflationary pressures weighed off against trying to spur a faster economic bounce back.

The Bank of Russia said in a statement that it made the move as “the decline in inflation expectations has stalled” but insisted that it remained on target to meet its long-term targets of 4 percent inflation by the end of 2017.

The majority of economists predicted that the bank would hold the rate steady after trimming it in June for the first time in almost a year.

The Bank of Russia said that decision was down to decreased inflation risks but that it did not signal the start of a cycle of cuts.

The last few weeks have prompted cause for caution over inflation as figures for June saw household incomes that have been hit for two years over the economic crisis rebound.

The ruble also remains volatile after a recent bounce back gave way to a fall as oil prices have slipped down.