The Bank of Russia has effective tools to reduce inflation to the target of 4%, and will be ready to raise the key rate for this purpose, the regulator’s Governor Elvira Nabiullina said.
"The Bank of Russia has effective tools for reducing inflation towards the target. At recent meetings, we raised the key rate with tangible steps and will be ready to do this again if we do not see signs of a sustainable slowdown in inflation and cooling of inflation expectations," she said.
According to the bank's governor, there is currently inflation due to an internal supply and demand imbalance. Demand is increasing, but supply growth is constrained, hence price growth is escalating.
Nabiullina recalled that the Bank if Russia raised the trajectory of the key rate for 2023 to 15-15.2% in its new projection, and that the average rate for next year will be 12.5-14.5%.
