The Board of Directors of the Bank of Russia decided to keep the key rate at the level of 7.5% per annum, according to data on the Central Bank’s website. Analysts predicted such a decision, before the rate was cut six times in a row.

The Bank of Russia kept its reference rate at 7.5%

The Central Bank indicated that the current growth rate of consumer prices remains low. At the same time, the inflation expectations of the population and companies have increased slightly compared to the summer months.

  • The regulator forecasts a decline in annual inflation to 5.0-7.0% in 2023 and a return to 4% in 2024.
  • The Central Bank also expects a GDP contraction in 2022 of 3.0-3.5%. The Russian economy will transition to growth in the second half of 2023.

Previously, on September 16, the Bank of Russia lowered the rate by 50 basis points (bp), from 8% to 7.5%.

Experts at Renaissance Capital expect a long pause in key rate dynamics. The investment company forecasts a resumption of its decline after the return of annual inflation to a lower level. The experts also recalled that an embargo on the supply of Russian oil to the EU will come into force in December, which seriously increases the uncertainty of the forecasts of economic activity in the country for 2023.

Author:

Natalia Gormaleva

Source: RB

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I am Bret Jackson, a professional journalist and author for Gadget Onus, where I specialize in writing about the gaming industry. With over 6 years of experience in my field, I have built up an extensive portfolio that ranges from reviews to interviews with top figures within the industry. My work has been featured on various news sites, providing readers with insightful analysis regarding the current state of gaming culture.

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