Russia's conservative monetary policy prevents inflation hike, risks economic slowdown.
In 2016, Russia's central bank focused on controlling inflation by adjusting interest rates twice during the year. By lowering the key rate to 10% per year, they aimed to keep the money supply stable. This helped maintain a positive real interest rate in the money market, which can prevent prices from rising too quickly. Despite the risk of a slowdown in the economy, the strategy seemed to be effective in managing inflation.