The Bank of Russia for the first time since December 2023 raised a key rate – from 16 percent to 18 percent per annum. The press service of the regulator reported this on Friday, July 26.
“Board of Directors of the Bank of Russia on July 26, 2024 decided to increase the key rate by 200 B.P., to 18.00 percent per annum,” follows from the message.
In the Central Bank of the Russian Federation, attention was attracted to the fact that inflation has accelerated and develops significantly higher than the April forecast of the Bank of Russia, and the growth of domestic demand continues to significantly ahead of the possibility of expanding the supply of goods and services.
“In order for inflation to decline again, additional tightening of monetary policy is required, and to return inflation to the goal, there are significantly more stringent monetary conditions than previously expected,” the regulator noted, adding that the Bank of Russia will evaluate the feasibility of further raising the key rate at the next meetings.
The report also states that the forecast of the Bank of Russia is significantly revised, including inflation for 2024 increased to 6.5-7.0 percent.
“, taking into account the conducted monetary policy, annual inflation will decrease to 4.0-4.5 percent in 2025 and will be near 4 percent in the future,” the regulator was assured.
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 September 13, 2024.