The Bank of Russia raised the key rate to 19% per annum
The Board of Directors of the Bank of Russia raised the key rate to 19 percent per annum.
This decision was taken on September 13, given the high current inflationary pressures.
Annual inflation this year may exceed the July forecast range of 6.5–7 percent, the Bank of Russia emphasized in a statement.
The regulator emphasizes that the growth of domestic demand in the country is outpacing the supply of goods and services.
In this regard, a tightening of monetary policy will be required to reduce inflation expectations.
The Bank of Russia does not rule out another increase in the key rate at the next meeting.
The Central Bank's forecast for 2025 notes that annual inflation will decrease to 4–4.5 percent, taking into account the current monetary policy.
The bank said the July rate hike had tightened monetary conditions.
They explained that high market rates support savings sentiment, but this is not enough yet.
The Bank of Russia seeks to minimize the risks of rising inflation through balanced growth of the Russian economy.
