Bank of Russia to maintain tight monetary policy

The Bank of Russia admits maintenance of tight monetary policy throughout 2024 for returning inflation to the targeted level of 4%, the regulator’s Deputy Governor Alexey Zabotkin said.

"It will probably be necessary to maintain tight monetary policy throughout next year as well for returning inflation to the 4% target. Our baseline forecast suggests the average key rate range for next year from 11.5% to 12.5%," he said.

According to Zabotkin, the key rate will return to its neutral range of 5.5-6.5% further on by 2026.

The Central Bank’s forecast suggests the rates of the country’s GDP growth next year from 0.5% to 1.5% and further on their return to 1.5-2.5% in the following years, the Deputy Governor said.