Bank of Russia for the first time clarified Details of the debate regarding the decision in February to keep the interest rate at 16%. Some board members expressed the opinion that an interest rate cut could be made a little earlier than the second half of the year.
A summary of the discussions noted that most participants expected the rate cut to begin in the second half of 2024, but some did not rule out the possibility of an earlier cut. The conditions for lowering the key interest rate will be difficult if inflation and real interest rates fall steadily.
Members of the Board of Directors of the Bank of Russia agree that inflationary pressure is gradually weakening as a result of tight monetary policy. The Central Bank noted that price growth slowed from 11.3% in July-November 2023 to 6.5% in December-January. However, inflation pressure in January remained at approximately the level of December.
The Central Bank also published its comments on the medium-term forecast; It forecast annual inflation for the first quarter at 7.6% and GDP growth at 4.3%. Russian banks will experience liquidity shortage at the end of 2024. The Bank of Russia kept its key interest rate at 16% on February 16, noting the need for tight monetary conditions to stabilize inflation.
Formerly Central Bank of the Russian Federation elongated The right of non-bank entities to disclose sanctions-sensitive data.
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Source: Gazeta
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