Russia\\\'s central bank waves off inflation fears

The Russian Central Bank left its key interest rate on hold at a regular meeting on Friday, arguing that inflation is still on track to hit its medium-term target even though it is set to remain above 7 percent this year. The uncharacteristically dovish stance suggests the bank is reacting to concerns about ebbing economic growth as Western sanctions over the Ukraine crisis bite. The decision keeps the bank's central policy rate, the one-week minimum auction repo rate, at 8 per cent, and was broadly expected. In an accompanying statement, the bank said inflation this year was likely to exceed 7 per cent because of an ‘aggravation of geopolitical tensions, the imposition of external trade restrictions and the impact of these developments on the ruble exchange rate dynamics.’ The bank has in effect abandoned this year's official inflation target of 5 per cent, as well as a wider range of 3.5-6.5 per cent allowed under the bank's rules, following a sweeping ban on food imports imposed in retaliation for Western sanctions, according to themoscowtimes.com