The RSPP warned against the build-up of systemic risks, including to banks, due to tight monetary policy.

The RSPP warned against the build-up of systemic risks, including to banks, due to tight monetary policy.

Keeping the key interest rate at 14% was an expected decision, but it indicates the continuation of tight monetary policy (MCP) of the Central Bank of Russia, which creates a risk of accumulation of systemic problems, including for the banking sector, the Russian Union of Industrialists and Entrepreneurs said. "RSPP understands the logic of the regulator: inflation remains above the target level, and inflation expectations of the population and businesses are high.