In October, the Central Bank considered increasing the key rate to 22%

“When the magnitude of the increase in the key rate was discussed at the next meeting, the majority of participants were in favor of increasing it to 21% per year. At the same time, proposals were made for a more moderate increase, up to 20% per year, and a steeper increase, up to 22% per year,” the document says.

Participants who proposed raising the rate to 22% said this would “reduce inflation more quickly, provide insurance against new pro-inflationary risks, and help reduce inflation expectations.” Despite this, most participants agreed that a sharp change in the rate could lead to greater volatility in financial markets.

In late October, Central Bank President Elvira Nabiullina said the regulator was considering raising the interest rate above the current 21%, but the Central Bank president did not specify what measure was being discussed.

The Bank of Russia decided to increase the interest rate by 200 basis points. p., up 21%, October 25. This was necessary to return inflation to the target (4%) and reduce inflation expectations, Nabiullina later explained.

In turn, analysts surveyed by RB.RU said that at the end of 2024 the Central Bank could increase the interest rate to 22%. The next meeting of the regulator’s board of directors on the tariff issue is scheduled for December 20.