[Seoul=Newsis] Reporter Jae-Jun Lee = Russias central bank, which was subjected to Western financial sanctions during its invasion of Ukraine, decided on the 18th to keep its key interest rate at 20%.
According to the TASS news agency, the central bank of the Russian Federation has frozen the key interest rate, which has soared to the highest level in 19 years due to the Ukraine crisis.
It is pointed out that the central bank has shown a stance to continue economic defense in the face of unprecedented sanctions from the international community.
The market had expected the base rate to remain at 20%, but it stayed the same. On the 28th of last month, Russia raised its key interest rate from 9.5% to 20%, which had caused economic chaos due to the invasion of Ukraine and super-strong Western sanctions against it.
The Russian Central Bank said in a statement that the Russian economy is entering a stage of large-scale structural change. It said it was accompanied by temporary but unavoidable high inflation.
The central bank is concerned that this will reduce Russias gross domestic product over the next several quarters.
Meanwhile, Russian President Vladimir Putin submitted a proposal to the House of Representatives on the same day that the governor of the Central Bank, Elvira Nabiulina, remains in office. The House of Representatives voted on the re-election of Nabiulia governor on the 21st.