UPDATE: Russian central bank keeps key rate at 11%

(Adds details in paragraphs 3–7)

MOSCOW, Dec 11 (PRIME) -- The Russian central bank has kept its key rate unchanged at 11%, the regulator said in a press release Friday.

The central bank made the decision “taking into account higher inflationary risks and risks of economic slowdown,” the regulator said.

The central bank expects that Russia’s annual inflation will amount to around 6% in 2016 and reach the targeted level of 4% in 2017.

Inflation has been slowing in November and December, the regulator said. As of Monday, annual inflation fell to 14.8% from 15.6% in October. Seasonally adjusted monthly inflation slowed to 0.7% in November from 0.9% in August–October.

Annual inflation will slow significantly at the beginning of 2016, the bank said.

The central bank will resume cutting its key rate once inflation slows and inflationary risks weaken, it said. The regulator will hold the next meeting to consider the key rate on January 29, 2016.

The gross domestic product (GDP) contraction will slow to 0.5–1.0% in 2016, while economic growth of 0.0–1.0% is expected in 2017, the regulator said.

End