Bank of Russia raised key rate to 13%

The Board of Directors of the Bank of Russia today, September 15, decided to increase the key rate to 13.00% per annum. This is reported on the official website of the regulator.

“Inflationary pressure in the Russian economy remains high. Significant pro-inflationary risks have materialized: growth in domestic demand, outpacing the possibilities for expanding output, and the weakening of the ruble in the summer months. In these conditions, it is necessary to ensure additional tightening of monetary conditions to limit the scale of inflation deviation upward from the target and return it to 4% in 2024. The return of inflation to the target and its further stabilization around 4% also implies a long period of maintaining tight monetary conditions in the economy,” the official statement said.

According to the updated forecast of the Bank of Russia, by the end of 2023, annual inflation will be 6.0–7.0%. Considering the current monetary policy, yearly inflation will return to 4% in 2024 and remain close to 4%.

Bashinform News Agency wrote that on August 15, the Board of Directors had already raised the key rate to 12%.

Author: Laysan Zakirova