Analysts and businesses had expected a sharper key rate cut, but inflationary risks are holding back monetary easing, which the Russian regulator gingerly links to the war.

The Bank of Russia is set to cut its key interest rate to 14% at its June 19 meeting, marking the ninth consecutive reduction from a wartime peak of 21%.

According to the regulator, economic growth continues at a moderate pace after a temporary decline at the beginning of the year