Central Bank Vice-President Aleksey Zabotkin said the Central Bank may consider raising the neutral interest rate range from the current 5-6% level after the July board meeting. Words lead the way DEA News.
“The current assessment of the neutral rate is 1-2% in real terms, this is 5-6% in nominal terms, given the target inflation of 4%,” Zabotkin said during public consultations on the Bank’s Monetary Policy Review. .
According to him, there are now more arguments than last year to increase the range of the neutral ratio.
“The Board of Directors regularly updates its opinion on the neutral rate, based on the results of the July meeting on the key interest rate,” said the representative of the Central Bank of Russia.
Former Central Bank Governor Elvira Nabiullina statedHe said the regulator may consider raising the key rate if it sees signs of increasing price pressure at its next Board meetings and threatens to meet its 4% inflation target.
Source: Gazeta
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