The board of directors of the Bank of Russia decided to increase the key interest rate by 100 basis points (bp), from 12 to 13% per year, the regulator reported in a statement.
The Central Bank notes that inflationary pressure in the Russian economy remains high and that “significant pro-inflationary risks” have also materialized: domestic demand has grown, which is outstripping the possibilities of expanding production, and the weakening of the ruble in summer has increased. It also had an impact.
The return of inflation to the 4% target by 2024 and its further stabilization around this level also implies a prolonged period of maintaining tight monetary conditions in the economy, according to the report.
As of September 11, annual inflation increased to 5.5%. In July 2023 it was 4.3%, in August 5.2%.
- A month earlier, on August 15, the Bank of Russia held an extraordinary meeting at which it decided to increase the key interest rate to 12% per year. The decision was made “to limit risks to price stability.”
- In early July, the Bank of Russia, for the first time since September 2022, raised the key interest rate by 100 basis points, to 8.5% per year. Prior to this, the Central Bank of the Russian Federation kept the key interest rate at 7.5% six times in a row.
Author:
Anastasia Marina
Source: RB
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