Russia central bank flags 'inevitable' surge in inflation: Report

Russia's central bank kept its key interest rate at 20 per cent on Friday following an emergency rate hike in late February and warned of an imminent spike in inflation and a looming economic contraction.

The central bank board met on rates after raising the key rate from 9.5 per cent on Feb 28 to 20 per cent to support financial stability when the rouble crashed to record lows as the West imposed sanctions against Russia over its actions in Ukraine.

On Friday, the central bank said in a statement Russia was entering “a temporary but inevitable period of increased inflation”, while flash indicators suggested a deterioration in the economy that will shrink in the coming quarters.        

Zelenskyy says ‘moving towards goal’ on EU bid

Ukraine President Volodymyr Zelenskyy said he had a “substantive” conversation with European Commission President Ursula von der Leyen on the country’s bid for EU membership. The Commission will issue its opinion on Ukraine’s application “within a few months,” Zelenskyy said on Twitter. 

“Together we are moving towards our strategic goal,” Zelenskyy said, issuing a tweet in Ukrainian and English.