According to a press release distributed by the Central Bank of Russia, the key rate has been raised to 19%, previously it was 18%.
The Central Bank of Russia clarified that inflationary pressure was still high at the moment.
"Annual inflation by the end of 2024 will likely exceed the July forecast range of 6.5-7.0%. The growth of domestic demand is still significantly ahead of the possibilities for the supply of goods and services' expansion",
the Central Bank of Russia said.
Accordingly, the Central Bank believes that the Russian economy needs further tightening of monetary policy. It will help return to disinflation and reduce inflation expectations, as a result of which inflation should return to the target next year.
The regulator does not rule out that the rate will be raised again at the next meeting. It will take place on October 25.
Furthermore, the Russian Central Bank added that, against the backdrop of the implemented monetary policy annual inflation would decrease to 4–4.5% next year, and then, it would reach a level of about 4%.
