The Central Bank of Russia has left the door open for an additional interest rate hike in line with inflation targets. Deputy Governor of the Central Bank of Russia, Alexey Zabotkin, stated that inflation has been rising at a slower pace than expected in the first quarter, saying, “If inflation slows down at a different pace in line with the inflation targets, we do not rule out an additional increase in the policy rate.” Zabotkin, speaking to journalists in Moscow, mentioned that the inflation rate continues to stay far from the targeted 4 percent level. Indicating that they will maintain a tight monetary policy, Zabotkin used the expression, “If the March inflation data is similar to weekly indicators, then we can say that inflation rose at a slower pace than expected in the first quarter.” Explaining that the inflation targets are set at 7 to 8 percent for 2025 and 4 percent for next year, Zabotkin stated, “If inflation slows down at a different pace in line with the inflation targets, we do not rule out an additional increase in the policy rate.” The Central Bank of Russia had raised its policy rate to 21 percent, the highest level ever, with a 200 basis point increase in October 2024 due to rising inflation.