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

"Despite certain stabilisation in financial and commodity markets and a slowdown in inflation, inflation risks remain high. These stem from the current developments in the oil market, persistently high inflation expectations and some uncertainties surrounding budget configuration," the CBR said.

The central bank pointed out that it will need more time to tighten its monetary policy.

The CBR expects inflation to be less than 6% in March 2017 and 4% in late 2017, while the economy is expected to contract 1.3%-1.5% in 2016.

"It is expected that quarterly GDP growth rates will enter positive territory between late 2016 and early 2017," the CBR said.

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