Bank of Russia raised key rate to 7.5%

On October 22, the regulator's board of directors decided to raise the key rate by 0.75 percentage points at once, to 7.5% per annum.

The Central Bank explained that inflation in the country was developing significantly higher than the forecast of the Bank of Russia, and by the end of 2021 is expected to be in the range of 7.4-7.9%.

"If the situation develops following the baseline forecast, the Bank of Russia admits the possibility of further increases in the key rate at the next meetings. Decisions on the key rate will be made taking into account the actual and expected rate of inflation relative to the target, the development of the economy over the forecast horizon, as well as the assessment of internal and external risks and the reaction of financial markets to them," the Central Bank's press service reports.

Recall that the Bank of Russia is raising its key rate for the sixth time in a row. Last time it increased in September by 0.25 percentage points, to 6.75% per annum. The next meeting of the Board of Directors of the Bank of Russia on the key rate will be held on December 17.