By Katya Golubkova

MOSCOW (Reuters), Russia’s central banks is not likely to increase its key interest rates by more than 100 basis point in December, as the economic challenges are much less severe than they were in 2014. This was at the height the Crimean crisis in 2014. Governor Elvira Nabullina stated on Thursday.

After a near six-year high in inflation, the Bank of Russia raised its key interest rate six times this year. It is expected that it will increase again at its December 17 meeting.

Nabiullina, a Reuters Next speaker said that the baseline scenario would see the largest increase in key rates at 100 basis points.

Reuters polled late November analysts and they predicted that the central bank would raise its key rate by 50 basis point to 8%, from 7.5% as of Dec. 17.

Nabiullina stated that it was a dangerous policy error to underestimate inflation risks, but that borrowing costs weren’t expected to rise to double-digit levels like they did at the end of 2014.

As the ruble fell to records lows and inflation increased after West placed sanctions against Russia over its annexation of Crimea, the West witnessed a huge increase in the rate at which it rose from 10.5% to 17%.

The current situation is obviously less dire than what it was back then. Nabiullina stated that Russia’s inflation levels and expectations are concerning.

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