The Central Bank considered the possibility of raising the key rate to 20% on July 26.
But then it was decided to limit the increase to 200 basis points – up to 18%.
On Wednesday, August 7, a summary of the key rate discussion that took place on July 26 was published on the Central Bank’s website .
It lists arguments for raising the rate by another 200 basis points – 20%.
The main reason is rising inflation, which has been above the target level of 4% for a long time.
In addition, in June 2024, analysts recorded a decline in economic activity growth with an acceleration in price growth.
At the same time, other participants in the discussion highlighted factors that make it possible to limit it to 18%.
They noted that it is necessary to take into account factors that have a one-time impact on the national economy.
In addition, in Russia in the near future the conditions for lending will become even more stringent. This will be facilitated by the cancellation of the preferential mortgage program.
As a result, the Bank of Russia decided to raise the rate to 18%.
Author: Dmitry Bobrov
