Central bank hikes rates by 100 bps to 16
Governor Nabiullina says end of hiking cycle is near
Analysts split on whether another increase is coming
Next ratesetting meeting scheduled for Feb. 16

MOSCOW, Dec 15 Reuters Russia39;s central bank raised its key interest rate by 100 basis points to 16 on Friday, hiking borrowing costs for the fifth consecutive meeting in response to stubborn inflation, and suggested that its tightening cycle was now close to completion.

The bank has raised rates by 850 basis points since July, including an emergency hike in August after the Kremlin called for tighter monetary policy when the rouble tumbled past 100 to the dollar. It has since recovered to just over 90.

The bank said proinflationary risks over the mediumterm horizon remained substantial and warned that stabilising inflation near its 4 target would require high rates for a long time. Higherthanexpected government spending would also raise inflation risks, it said.

Friday39;s decision was in line with a Reuters poll of analysts.

Governor Elvira Nabiullina said the 100basispoint hike and a rate hold were the only options substantially considered, but there were isolated proposals for a sharper increase.

Based on our baseline scenario … we are close to the end of the rate hike cycle, but in many ways everything will depend on the situation, Nabiullina said.

The central bank39;s tightening cycle began this summer when inflationary pressure from a tight labour market,…