Russia’s Central Bank Governor Elvira Nabiullina said the regulator may consider raising the key rate at its next board meeting if it sees signs of increasing price pressure that threatens to meet its 4 percent inflation target. said the regulator. His words are quotes report On the monetary policy of the Central Bank of the Russian Federation.
Currently, the key rate is set at 7.5%. The next rate meeting of the Central Bank will be held on 9 June.
As the head of the Central Bank noted, in 2023, the regulator expects the economic recovery to continue, which may be accompanied by increased inflationary pressure due to demand-side factors.
“If we see signs of such an acceleration in inflation that will threaten the achievement of the 4 percent target by 2024, we may need to raise the key rate at subsequent meetings,” Nabiullina said.
According to him, due to delays in monetary policy, future decisions on key interest rate will increasingly affect inflation as early as 2024, when it will return to the 4% target. The updated average key rate estimate is 7.3-8.2% for 2023 and 6.5-7.5% for 2024.
He said that the Central Bank has increased its 2023 GDP growth forecast to 0.5-2.0%, taking into account the faster adaptation of the economy, and that the economy will return at the end of 2024.
It will grow to the end of 2021 levels with a growth rate of 0.5-2.5%, then 1.5-2.5% per year.
Former Minister of Economic Development Maxim Reshetnikov declarationThat the inflation rate in Russia in April 2023 was only 2.6%.