Board of Directors of the Bank of Russia on March 22 decided to maintain a key rate at 16 % per annum. This is stated in the regulator’s message.
“Internal demand continues to significantly ahead of the possibilities of expanding the production of goods and services. The hardness of the labor market has again intensified. So far, it is premature to judge the further speed of disinflation trends. The monetary policy pursued by the Bank of Russia will ensure the process of disinflation in the economy,” the report said.
The regulator noted that the return of inflation to the target in 2024 and its further stabilization near 4% assume a long period of maintaining strict monetary conditions in the economy. “According to the forecast of the Bank of Russia, taking into account the ongoing monetary policy, annual inflation will decrease to 4.0-4.5% in 2024 and will be near 4% in the future,” the message says.
“The situation in the global economy continued to improve both in the services sector and industry. As a result, prices in raw materials have moved to growth, which will support Russian export,” Elvira Nabiullina, the chairman of the Bank of Russia, publicized in turn. Meetings of the Board of Directors.
According to her, after a decline at the beginning of the year, export is restored due to an increase in oil prices.
“At the same time, secondary sanctions restrain this process. The dynamics of imports against the background of strong internal demand remains increased. Our monetary policy will contribute to more balanced import dynamics corresponding to export capabilities,” she said.
the Bank of Russia increased the key rate by 100 basic points – up to 16% per annum at a meeting on December 15, 2023.