You should not expect a decrease in the key rate of the Bank of Russia in the next three months. This view was expressed by Nikolai Ryaskov, General Director of Investments of the PSB Management Company, in an analytical note commenting on the latest macroeconomic data and the regulator’s rhetoric; There is a copy on socialbites.ca.
“Central Bank Governor Elvira Nabiullina stated that in February the board discussed both keeping the interest rate at the same level at 16 percent and increasing it. “In addition, the regulator also revised the key interest rate forecast range upwards, to 13.5-15.5% in 2024 and 8-10% in 2025,” the expert recalled.
According to him, the inflation expectations of citizens and companies are at the level of 9.5-12 percent, that is, 2.5-3 times above the Central Bank’s 2024 target, and the published data on the current growth rate of consumer prices allow us to trust that monetary policy will be eased in the coming months.
Ryaskov admitted that with the steady slowdown in inflation, the Bank of Russia may begin to gradually reduce interest rates in the second half of 2024. However, in the expert’s opinion, at the end of this year the rate will still not fall below 11% annually.
Central Bank at its February meeting was recorded key rate of 16% per annum.
Earlier, the Central Bank of Argentina harshly reduced key rate.
What are you thinking?
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.