The Central Bank of Russia (CBR) kept its interest rate unchanged at 11.0% on Friday. The central bank noted that inflation risks remained elevated.

"The Board of Directors sees the positive processes of inflation slowdown and inflation expectations decline, as well as shifts in the economy which anticipate the beginning of its recovery growth," the CBR said.

The central bank pointed out that risks to inflation were "declining inflation expectations against the target, uncertainty in parameters of the national budget, and ambiguity of the observed movements in nominal wages".

The CBR expects inflation to be about 5% in April 2017 and 4% in late 2017, while the quarterly GDP was expected to be positive in the second half of the year or in early 2017.

"Should inflation risks fall as much as to ensure with greater certainty that the Bank of Russia achieves its inflation target, the Bank of Russia will resume a gradual lowering of its key rate at one of its forthcoming Board meetings," the CBR said.

The next meeting of the CBR is scheduled to be June 10, 2016.