The Central Bank of the Russian Federation will increase the key rate from 15% to 16% at its board meeting on December 15. This consensus estimate given The newspaper “Izvestia” is based on a survey of 16 representatives of the financial market. 11 of them called for a 100 basis point increase in interest rates as a baseline scenario.
Not a single analyst allowed the discount. Only two banks surveyed did not rule out keeping this rate at 15%, PSB and DOM.RF Bank; Zenit and Absolut Bank, on the other hand, think it is likely to increase the key rate to 17%.
Rising prices in Russia and its economy, as well as falling oil prices and the weakening of the ruble against world currencies – this is how analysts explained their forecasts on the key interest rate.
The Central Bank will raise the interest rate to 16% on December 15, BCS World of Investments analyst Anatoly Trifonov told socialbites.ca on November 18. The expert said that there is a risk that inflation will exceed 7.5 percent at the beginning of December. In other words, the annual inflation ceiling predicted by the Central Bank for 2023 will be exceeded.
At the meeting on October 27, the Central Bank increased the interest rate by 200 basis points for the fourth consecutive time to 15% annually. The regulator explained its decision by the high current inflation rates. The Bank of Russia revised its price increase forecast in the country 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 depositors and borrowers do now? ours material.
Previous Analyst guess Increase in deposit interest rates in December.
Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.