By Thomas Grove
MOSCOW--Russia's central bank maintained its key interest rate at a record low as a rise of coronavirus cases in recent weeks has clouded the economic outlook and inflation has hovered above the target level amidst ruble volatility.
The bank on Friday held its benchmark rate at 4.25%, following several cuts earlier this year that drove the rate to a post-Soviet low amidst worries of a serious economic slowdown. The bank struck a cautious tone saying it would analyze the situation going further to decide whether further cuts were possible at upcoming meetings.
The virus has made a resurgence in Russia in recent months with cases hitting new records, though the government has said no new broad lockdown measures would be implemented. The bank said effects from the pandemic wouldn't have the same downward pressure as they did in the second quarter.
The ruble has strengthened slightly in recent weeks against a weaker dollar, but fears of potential sanctions under president-elect Joe Biden have boosted risks to the currency.
Write to Thomas Grove at thomas.grove@wsj.com
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12-18-20 0603ET
