Russian central bank keeps key rate on hold at pre-election meeting

MOSCOW, Sept 11 (Reuters) - The Russian central bank kept its key rate unchanged at 14% on Friday, one week before a parliamentary election whose turnout and results the Kremlin will be watching as a gauge of public anxiety and fatigue after 4-1/2 years of conflict in Ukraine.

"The economy as a whole is growing at a moderate pace in the third quarter of 2026. Current price pressures have increased significantly in recent months," the central bank said in a statement.

Russia's $2.6 trillion economy slowed sharply last year and is expected to post growth of just above zero in 2026 because of the high key rate, Western sanctions, Ukrainian attacks on economic targets and a strong rouble.

The central bank has come under pressure from businesses, which argue that borrowing to invest does not make sense at current interest rates and that the economy will not grow until the key rate falls to below 12%.

(Reporting by Elena Fabrichnaya and Gleb Bryanski; Editing by Mark Trevelyan and Vladimir Soldatkin)