The Board of Directors of the Bank of Russia made the first decision on the key rate in 2023: the regulator decided to keep the key rate at 7.5% per annum, the central bank said in a statement. In December and October 2022, the regulator kept the reference rate at 7.5% per year, and before that it had reduced it six times in a row.
“Current price growth rates are increasing, although they remain moderate in terms of sustainable components. The inflationary expectations of the population and companies have decreased, but remain at a high level. The dynamics of economic activity is better than the Bank of Russia’s October forecast,” the regulator said in a statement.
The Central Bank once again announced the forecast according to which annual inflation will rise to
The market also forecast that the key rate would remain at 7.5%. Pavel Paevsky, a debt market analyst at RSHB Asset Management, noted in his forecast that inflation at the end of 2022 stopped at 11.92% y/y, “which can be considered a positive achievement amid the transformation of the economy”.
“During Q2-Q4 2022, we began to observe factors that had a significant disinflationary effect: the strengthening of the ruble exchange rate, the rapid reduction of the key rate (in several rounds), a record harvest and a decrease in activity consumption of the population. Similar trends continue this year,” Paevskiy said.
The next meeting of the Board of Directors of the Central Bank, which will consider the issue of the level of the key rate, will be held on March 17.
Author:
anastasia mariana
Source: RB
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