Russia’s central bank has left its main lending rate at 11 percent and signalled that it is not looking at cuts to the cost of borrowing anytime soon as it focuses on keeping inflation under control.

The Banks of Russia has retained its key rate at 11.00% p.a. (3/18/2016):
On 18 March 2016, the Board … https://t.co/cW45oYTlBK cbr.ru— Bank of Russia (@cbr_en) March 18, 2016

At the same time the bank issued its latest forecast predicting Russia’s economy would contract by between 1.3 and 1.5 percent this year.

“Macroeconomic fundamentals … suggest a less severe downturn than previously estimated considering this level of oil prices/”

Slumping oil prices mean the country is in recession and the currency, the rouble, is weak.

Inflation has been on the wane – at 8.1 percent in February – but the bank’s economists
are not taking anything for granted saying inflation risks “remain high” due to unstable global oil and food prices and uncertainties about regulated prices in Russia a