Russia Keeps Interest Rates at 16% as Inflation Risks Persist from War

• Russia's central bank held interest rates unchanged at 16% to address inflation risks from the war in Ukraine, including attacks on regions bordering Ukraine.

• Policymakers gave no guidance on the direction of the next rate move, but reiterated that easing is more likely in the second half of the year once inflation slows.

• Attacks on agricultural and oil infrastructure regions may spur higher food and fuel prices, adding inflation pressures.

• Inflation expectations among households dropped for the third straight month but remain high at 11.5%.

• Analysts don't expect rate cuts to begin until September at the earliest, with rates expected to remain high for a prolonged period.