Shohin Urges Central Bank to Refrain from Raising Key Rate Amid Fuel Price Surge

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Business leaders are counting on the Central Bank to refrain from a "frontal reaction" to rising fuel prices and not raise the key interest rate at its next meeting (July 24), according to Alexander Shokhin, head of the Russian Union of Industrialists and Entrepreneurs (RSPP).

"Certainly, the situation in the fuel market adds to the problems. It would probably be wrong to expect a frontal reaction from the Central Bank, such as combating the rise in fuel prices, which could lead to price increases in other sectors, by raising the key interest rate. We hope for the prudence of our monetary authorities," Shokhin was quoted as saying by TASS.