The Central Bank of the Russian Federation plans to gradually reduce the interest rate throughout 2024, after increasing it to 16 percent in December 2023. In an interview on YouTube about this subject “Private Conversations” said Deputy Governor of the Central Bank Alexey Zabotkin.
According to the official, the average key rate in 2024 will be 12.5-14.5%, according to the regulator’s updated forecast in October.
“The interest rate will be reduced from the current level of 16%, to which it was raised in December last year,” Zabotkin said.
The Deputy Governor of the Central Bank emphasized that the main factor when making interest rate decisions will be inflation dynamics. He stated that although there was some slowdown in price increases in December and January, inflation expectations are still high.
Before that, the head of the Central Bank, Elvira Nabiullina said Interest rates are planned to be reduced as inflation approaches the target level of 4%. In 2023, inflation in Russia was at 7.59%.
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