Russia is considering key rate increasing possibility

According to deputy chairman of the regulator Alexey Zabotkin, the Central Bank will discuss increasing the key rate to 17% or 18% at a meeting in July. He noted that “high levels of inflation accompany high economic growth rates,” and the target of 4% will not be reached until mid-2025.

He recalled that at the June meeting, when the Central Bank kept the key rate at 16%, raising it “to 17% or even 18%” per annum was discussed. These alternatives will most likely be on the table at the July meeting.

“Whether they need to be expanded will depend on incoming data,” added Alexey Zabotkin.

A little earlier, the Central Bank allowed a reduction in the key rate in the second half of the year, subject to a steady decline in inflation.

Author: Sergey Nikolaev