The Board of Directors of the Bank of Russia decided to maintain the key interest rate at 16% per year. This is stated in the regulator’s message.
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Prior to this, the Central Bank kept the key rate at 16% in its February and April meeting. The previous increase was on December 15, when the board increased it by 100 bps. p. – from 15 to 16% annually.
“The current rate of price growth has stopped decreasing and remains close to the values of the first quarter of 2024. The growth of domestic demand continues to significantly exceed the possibility of expanding the supply of goods and services,” the regulator reports. and adds that it does not exclude the possibility of increasing rates at the next meeting.
As noted by experts interviewed by RB.RU, the maintenance of the key rate at 16% is supported by the suspension of consumer demand growth over the past two months. According to Maxim Pleshkov, chief bond analyst at Solid Broker, the underlying components of inflation are significantly below the indicative annual inflation level set by the Central Bank (4%).
Author:
Natalia Gormaleva
Source: RB
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