Russia’s Central Bank kept its key interest rate at 14% on Friday, saying that rising fuel costs, driven by Ukrainian drone attacks on oil refineries, and a “temporary reduction in production capacities” are making it difficult to tame inflation.
The Central Bank reported that annual inflation hit 6.3% on Sept. 7. Policymakers maintained their full-year inflation forecast at 6% to 7%, and still expect price growth to fall toward the 4% target next year.
“Current price pressures have increased significantly in recent months,” the regulator said in a press release. “The rise in motor fuel prices has also affected underlying inflation dynamics.”
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