Novak explains how 21% rate affected inflation

In October, the Central Bank raised the key rate in Russia to a record 21%. According to Deputy Prime Minister Alexander Novak, the results of this decision are already noticeable.

"It is clear that the Central Bank is raising it (the key rate) and pursuing a tight monetary policy, as we can see, in order to bring down inflation and inflationary expectations. In my opinion, it is already working",

Novak said.

He added that inflation in Russia was at its peak in July and reached 9.2%. Now, it is declining. At the beginning of November, it amounted to 8%.

Novak clarified that further observations would determine the future dynamics.

It was previously reported that in December the regulator could raise the rate to 23%.