Central Bank Governor Elvira Nabiullina said that each percentage of annual inflation costs the country’s citizens 600 billion rubles. RIA News.
According to Nabiullina, citizens currently have slightly less than 60 trillion rubles in ruble accounts and deposits and cash circulation.
“This means that the cost of every percentage of inflation lost during the year was 600 billion rubles out of Russians’ pockets,” the Central Bank governor said.
Raising the key interest rate and increasing deposit rates allows people to offset these losses from inflation, he added. According to the regulator’s forecast, it will be possible to return inflation to 4% in 2025. Nabiullina assured that from now on the Central Bank may start reducing interest rates, but the interest rate will remain high for a while.
The Central Bank of Russia also increased its 2023 inflation forecast from 6-7 percent to 7-7.5 percent, and set the 2024 forecast range as 4-4.5 percent instead of the previously expected 4 percent.
The day before, the European Commission significantly developed Russia GDP forecast.
Previously, the Central Bank unexpectedly raised Up to 15% annual key rate