Bank of Russia ready to increase key rate once again

Russia’s Central Bank will increase the key rate again unless it sees sustainable slowdown of inflation and inflation expectations' cooling, the regulator’s Deputy Governor Olga Polyakova said.

"At recent meetings we have increased the key rate by notable rates, having raised it by 7.5% p.p. over the past period to 15% per annum. We are ready to do it again if necessary unless we see signs of sustainable slowdown of inflation and cooling of inflation expectations," Polyakova said.

The Russian Central Bank’s board of directors increased the key rate by 2% at once at its October meeting to 15% per annum, noting a considerable rise in the current inflation pressure. In October the regulator also upgraded its inflation outlook for 2023 to 7-7.5% from 6-7% projected earlier.