The Bank of Russia may raise its key interest rate by 1% at its next meeting, taking it to 14% annually. The portal reports this finance citing Bloomberg Economics economist Alexander Isakov.
Iskhakov believes that the head of the Central Bank, Elvira Nabiullina, will not want to disappoint market expectations, including at least two 1 percentage point interest rate hikes. Until March 2024. According to Bloomberg expert, the soft position of the regulator will create the risk of a new wave of weakening of the ruble in an environment of high inflation. The Central Bank had previously predicted that inflation in 2023 would be around 6-7 percent. Interest rate increase will be third in a row to be continued Tightening of monetary policy in the context of inflation and weakening of the national currency.
The other day, economist Andrei Barkhota made a bolder prediction, suggesting that the Central Bank could raise the interest rate to 15% at its meeting on October 27. Analysts participating in the Central Bank of Russia’s survey increased the GDP growth forecast to 2.5 percent and the 2023 inflation forecast to 7 percent. They also raised their base rate forecast for this year to 9.8%.
At the beginning of the week, the Court of Accounts drew attention to the risks of the state budget for the 2024-2026 period. Recently the Central Bank explained Despite tight monetary policy, loan demand remains high. .
Formerly Minister of Economic Development of the Russian Federation Maxim Reshetnikov appreciated Consequences of high interest rate of the Central Bank of the Russian Federation.