Russia Key Rates Seen on Hold Until June, Nabiullina Says

Russia’s central bank won’t cut its key rate until at least a meeting in June, Chairman Elvira Nabiullina said, acknowledging the threat of missing forecasts for inflation, economic growth and capital outflows this year.

A weaker ruble is putting inflation at “high” risk of overshooting the central bank’s 5 percent target while economic growth is “likely” to slow below 1 percent, falling short of its forecast for 1.5 percent to 1.8 percent expansion, Nabiullina said at a banking conference in Moscow today. The economy will be sapped by capital outflows, which are set to overshoot the central bank’s $20 billion forecast, she said.