Bank of Russia does not rule out additional key rate hike

The Bank of Russia does not rule out an additional increase in the key rate in case of stronger pro-inflationary risks, the press service of the regulator said.

The Bank of Russia noted that the increase in the key rate to 12% per annum is aimed at bringing inflation back to the target of 4% in 2024.

If there are stronger pro-inflationary risks, an additional increase in the key rate is possible, the regulator added.

"The Bank of Russia's further decisions on the key rate will be based on the extent to which actual and expected inflation dynamics relative to the target, the economic restructuring process as well as risks from internal and external conditions and the reaction of financial markets to them will be capable of further strengthening the risk of inflation deviating upward from the target near 4% in 2024. Also, additional key rate increase is possible in the event of increased pro-inflationary risks," the regulator said.

Earlier today, the Bank of Russia at an extraordinary meeting of its Board of Directors decided to raise the key rate to 12% from 8.5% per annum.