The Central Bank Board of Directors will leave the key interest rate at 7.5% on Friday, March 17. Still, the regulator could break the stagnation in monetary policy easing as early as April 2023. In this respect writer TASS with reference to analysts.
“In 2022, the key rate of the Bank of Russia has historically crossed a wide range. After a record high of 20% in February due to sanctions pressure from Western countries and the economic shock, the regulator reduced the percentage six times in a row. Since September 2022, the rate has remained at 7.5% and, according to experts, will not change at the meeting on March 17.
As Albert Koroev, head of the department of stockbrokers of BCS Mir Investments, told socialbites.ca, if the Central Bank leaves the rate at 7.5% on Friday, “a significant reaction in the dynamics of securities – stocks, bonds, ruble deposits and loans interest rates are not expected.
According to the estimations of experts interviewed by TASS, the key rate could rise to 8.5-9% per annum by the end of 2023. The increase in the inflationary expectations of the public and the budget deficit may be factors that tighten the monetary policy.