Russian cental bank holds key rate at 7.5
Says inflation risks prevail in short and medium term
Decision to hold is in line with analyst consensus
This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine

MOSCOW, Dec 16 Reuters Russia39;s central bank held its key interest rate at 7.5 at its final meeting of the year on Friday but slightly shifted its rhetoric to acknowledge growing inflation risks, saying a recent military mobilisation was adding to labour shortages.

We gave a neutral signal. This means the next decision, the trajectory of the rate, will depend on the incoming data, on which factors proinflationary or disinflationary will prevail, Governor Elvira Nabiullina told a news conference.

In our opinion, proinflationary factors prevail now, not only over the mediumterm, but also over a shortterm horizon. Therefore, rate changes will depend on incoming data. It is possible to hold the rate, increase it or decrease it if disinflationary factors are realised, which we believe are weaker right now.

The Bank of Russia has kept policy on hold since September, after six rate cuts that gradually reversed February39;s emergency rate hike to 20. That action came after Russia sent tens of thousands of troops into Ukraine, prompting Western countries to impose wideranging sanctions.

On Friday, as in October, it warned that the partial military mobilisation ordered by President Vladimir Putin in September…