The Central Bank of Russia (CBR) kept its interest rate unchanged at 11.0% on Friday. This decision was expected by analysts.

The central bank noted that inflation risks increased, while risks of the slowdown in the economy remained.

"As inflation slows down in line with the forecast and on condition inflation risks recede, the Bank of Russia will continue with a downward revision of its key rate, to be decided at one of its forthcoming Board of Directors meetings," the CBR said.

The central bank expects the consumer price inflation to be about 6% in late 2016, and 4% in 2017.

"The external trade restrictions imposed against Turkey from January 2016 will not have a significant impact on consumer prices. These restrictions are estimated to add about 0.2-0.4 pp to inflation till the end of 2015 and in early 2016," the central bank pointed out.

Risks to inflation are low oil prices, monetary policy normalisation by major central banks and further slowdown in the Chinese economy, according to the CBR.

The central bank cut its interest rate five times in 2015.

The next meeting of the CBR is scheduled to be January 29, 2016.