Bank of Russia says key rate could well be raised again in month

The Bank of Russia admits an increase in the key rate as early as at the next meeting of its board of directors, the regulator’s Deputy Governor Alexey Zabotkin said in an interview with Izvestiya daily.

"The lower value of the forecast of the key rate range by the end of the year of 8.5% permits possible permanency of the rate," he said.

He recalled that the monetary policy is aimed at bringing back and stabilizing inflation at the targeted level of 4% in the long-term.

"An increase in the rate that will be required for solving this task, is ultimately implemented. And considering all prerequisites, more than one increase in July will most likely be required," Zabotkin said.

At the latest meeting on July 21, the board of directors of Russia’s Central Bank raised the key rate from 7.5% to 8.5% per an annum. The next meeting of the Bank of Russia’s board on the key rate will be held on September 15.