Board of Directors of the Bank of Russia on December 15 decided to increase the key rate by 100 basic points – up to 16 % per annum. This is stated in the regulator’s message.
“The current inflationary pressure remains high. According to the results of 2023, annual inflation is expected near the upper boundary of the forecast range of 7.0-7.5%. At the same time, GDP growth in 2023, according to Bank of Russia, will be above the October forecast and exceed 3%. This means that the deviation of the Russian economy up from the trajectory of balanced growth in the second half of 2023 turned out to be more significant than the Bank of Russia evaluated in October. Signs of activity of activity appeared in certain segments of the credit market, however, the general growth rate of lending still remains high. Inflational expectations of the population and price expectations of enterprises have increased. Returning inflation to the goal in 2024 and its further stabilization near 4% suggest a long period of maintaining tough monetary conditions in the economy, ”the message will say.
The Bank of Russia will make further decisions on the key rate, taking into account the actual and expected dynamics of inflation regarding the goal, the development of the economy on the forecast horizon, as well as evaluating the risks of internal and external conditions and the reaction of financial markets to them, the regulator noted.
The next meeting of the Board of Directors of the Bank of Russia, which will consider the issue of the key rate, is scheduled for February 16, 2024.