Russias consumer prices rose by 0.65% month-on-month and 10.3% year-on-year in March, according to the current data fromstate stats agency Rosstat.Stubborn inflation and the ensuing high rates of interest continue to be a majorconcern for Russian policymakers.At completion ofMarch, inflation lastly suppressed belowthe Central Bank guidance, but it remains far from the target of 4% trending above thedouble-digit level of 10%.
The Central Bank acknowledged thatinflationary pressures are reducing, but resolved to keep the key rates of interest unchanged at 21% at its March 21 policy conference.
The decision wasin line with consensus expectations.Renaissance Capital stated that March inflation surpassed its own and the agreement forecast, but still stayed belowthe Central Banks February estimate of 10.6%.
The experts at RenCap still preserve that the latest figures, including early April weekly inflation information, indicate a stabilization of inflationary pressures, albeit at a level still above the Central Banks target.The Central Bank is anticipated to keep the key rate unchanged in April.However, asthe regulator just recently alerted, falling worldwide oil rates and increased unpredictability about the international economic outlook could hold off the start of monetary reducing beyond RenCaps previous forecast of June.This post initially appeared in bne IntelliNews.