The Central Bank of the Russian Federation will increase the key interest rate by 100 basis points to 16% annually at its meeting on December 15. This forecast was given to socialbites.ca by BCS World of Investments analyst Anatoly Trifonov.
“Although the sharp acceleration in the rate of price increase in early November was due to a one-off increase in automakers’ prices, it increases the risk that inflation will exceed the 7.5% level at the beginning of December. “In other words, the annual inflation ceiling predicted by the Central Bank for 2023 will be exceeded,” he said.
The analyst also noted that the population’s inflation expectations have also increased sharply due to rising car prices. Trifonov did not rule out that interest rates may fall in the run-up to the December meeting, so the key rate hike will most likely be no more than 100 basis points.
At its board meeting on October 27, the Bank of Russia increased its key interest rate by 200 basis points for the fourth consecutive year, to 15% annually. The Central Bank announced its decision to increase interest rates with high rates of current inflation. The regulator revised its price increase forecast in Russia for this year. According to the Central Bank’s forecasts, annual inflation will be in the range of 7-7.5% in 2023, instead of the previously expected 6-7%.
What should Russians do now? in material “Newspapers.Ru”.
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