USD/RUB off 1 1/2-week high as CBR keeps rates at 21%

The USD/RUB currency pair pulled back from recent high of 83.9750, its strongest level since April 14th, as the Bank of Russia kept borrowing costs on hold, in line with market consensus.

The Bank of Russia (CBR) left its key policy rate without change at a record high of 21% at its April meeting.

The central bank noted that despite inflationary pressures were gradually easing, they were still elevated.

The CBR warned a further slowdown in global economic growth and a slump in oil prices could increase inflationary pressure through the Ruble’s exchange rate dynamics.

The CBR projects inflation to ease to 7.0%–8.0% this year and return to 4.0% by 2026. It also kept its 2025 GDP growth forecast without change at 1% to 2%.

In the meantime, US President Trump’s envoy, Steve Witkoff, is expected to visit Moscow today for a new round of talks with Russia’s President Vladimir Putin on the war in Ukraine.

The USD/RUB currency pair was last down 0.76% on the day to trade at 82.5800.