MOSCOW, Sept. 11 (UPI) -- The Bank of Russia said Friday it would keep key interest rates unchanged, but said future momentum may depend on global energy prices.
The bank's Board of Directors said it was keeping the key rate at 11 percent annually because of higher inflationary risks and "persistent risks of considerable economy cooling."
The Russian economy teetered on the brink of recession when entering fiscal year 2015. The Russian currency, the ruble, has been pressured by a weak economy in general and sanctions targeting the Russian energy sector.
"The depreciated ruble will continue to put pressure on prices in the next few months," the bank said.
Russian oil company Rosneft reported second-quarter profits at $1.99 billion, about 22 percent lower than the same period last year. The comany said the second half of the year was characterized by a high degree of volatility in crude oil prices and the value of the ruble.
Igor Sechin, company's chairman, asked the Kremlin last year to use a national welfare fund to support its growing debt.
The International Monetary Fund in January warned the low price of oil is "clearly bad news" for economies like Russia's that depend heavily on export revenue. The adverse effect for Russia, the fund warned, would likely be "very large."
Brent crude oil prices started the year at $55.38, about 15 percent higher than the current price. The Russian bank said it expected future scenarios would depend in large part on crude oil prices.
"Going forward, the economic situation will depend on the global energy prices and the economy's ability to adjust to external shocks," it said. "As a baseline scenario, the Bank of Russia considers that the oil price will linger at about $50 for the next three years."
A research note from Goldman Sachs said crude oil prices could fall 60 percent below the Russian bank's baseline scenario.
