The Bank of Russia decided to maintain a key rate at the level of 21% per annum. This was reported in the press release of the regulator.
“The Board of Directors of the Bank of Russia on December 20, 2024 decided to maintain a key rate at the level of 21.00% per annum. There was a more significant tightening of monetary conditions, which suggested the October decision at the key rate. This was facilitated by autonomous monetary policy Factors on the assessment of the Bank of Russia, taking into account a significant increase in interest rates for the final borrowers and cooling of credit activity, the achieved stiffness of monetary conditions forms the necessary prerequisites for the resumption of disinflation and the return of inflation to the target, despite the increased current increase in prices and high internal demand. The Bank of Russia will evaluate the feasibility of raising the key rate at the next meeting, taking into account the further dynamics of lending and inflation, ”the message is being examined.
according to the forecast of the Bank of Russia, taking into account the conducted monetary policy, annual inflation will decrease to 4.0% in 2026 and will be on targets in the future.
The Central Bank noted that “inflationary expectations continue to grow, enhancing the inertia of stable inflation.”
“In December, inflationary expectations of the population and price expectations of enterprises increased. Professional analysts increased inflation expectations by 2025-2026,” the press release says.
according to December 16, annual inflation increased to 9.5%.
Many economists expected to increase the rate by 200 basic points.
The last time the Bank of Russia increased the key rate by 200 basic points – to the record 21% per annum on October 25, 2024.