Russian central bank seen holding rates for now despite economic slump: Reuters poll

Russia's central bank will hold its main lending rate at 17 percent when it meets on Friday, even though the economy is likely to contract by 4.2 percent this year, a Reuters poll predicted on Thursday. An escalation of fighting in eastern Ukraine is adding to the economic pressures, with the European Union warning this week that further sanctions against Russia are planned. Out of 12 analysts polled by Reuters, 11 expected the central bank to hold its key rate this month, with one predicting a one-point cut. The central bank has said that it is unlikely to cut rates until inflation is on a clear downward trend.

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