Russian central bank kept its key interest rate on hold at the monetary policy meeting held Friday, but said it might cut rates in the first or second quarter of next year.

Russia's central bank decided to hold its key interest rate unchanged at 10.00 percent, the bank said in a statement on its website on Friday.

"The Bank of Russia will assess inflation risks and compliance of economic performance and inflation with the baseline scenario when it makes its key rate decision in the upcoming months," Reuters reported, citing the statement of the Bank of Russia.

With moderately tight monetary policy, the bank forecasts that annual growth in consumer prices will be less than 4.5 percent in October 2017, dropping to its target of 4 percent by the end of that year.

But the bank warned there was still a risk that its target might not be met because of domestic inflation expectations, a possible weakening in household saving, and higher real wages not supported by any rise in labour productivity, Reuters reported.

Meanwhile, the next rate setting meeting will be accompanied by a news conference with Elvira Nabiullina, the central bank governor, and is scheduled for Dec 16.