MOSCOW, June 7. /TASS/. Current figures show that the Russian economy continues to grow at a rapid pace. At the same time, the economy’s deviation from the trajectory of balanced growth remains significant, according to a press release from the Bank of Russia.

"GDP data for 2024 Q1 and high-frequency indicators for 2024 Q2 show that the Russian economy continues to grow rapidly. However, in 2024 Q1, the calendar effect of a leap year partly contributed to the annual GDP growth rate. Consumer activity remains high amid a significant increase in households’ incomes and positive consumer sentiment. According to companies’ surveys, investment demand remains high. The Russian economy still shows a significant upward deviation from a balanced growth path," the regulator said.

Earlier on Friday, the Bank of Russia has again kept its key rate at 16% per annum, though it holds open the prospect of increasing it at the upcoming meeting.

"On 7 June 2024, the Bank of Russia Board of Directors decided to keep the key rate at 16.00% per annum. The current price growth rate has stopped decreasing and remains close to the levels of 2024 Q1. Growth in domestic demand is still outstripping the capabilities to expand the supply of goods and services. The Bank of Russia holds open the prospect of increasing the key rate at its upcoming meeting. Furthermore, returning inflation to the target will require a significantly longer period of maintaining tight monetary conditions in the economy than it was forecast in April," the regulator said in a press release.

Consumer activity remains high amid a significant increase in households’ incomes and positive consumer sentiment. According to companies’ surveys, investment demand remains high. Labor shortages come as the key constraint on the expansion of output of goods and services. Labor market tightness continues to grow. Unemployment has dropped to a new historical low.

The Bank of Russia Board of Directors will hold its next meeting on the key rate on July 26.