The main internal risk for the Russian economy is the exhaustion of production capacity. press conferences said the head of the Central Bank of Russia, Elvira Nabiullina.
According to him, this factor greatly affects the balance of supply and demand in the market. Currently, domestic demand significantly outpaces the supply side. Also, according to Nabiullina, the situation is affected by the lack of labor.
As the regulator’s chairman noted, stimulating domestic demand could further increase inflationary pressure. Nabiullina described this scenario as highly undesirable.
September 13 Central Bank of the Russian Federation raised Key rate up to 19% per annum.
Four economists and financiers predicted for socialbites.ca that the interest rate will rise to 19-20%. Mikhail Vasiliev, chief analyst at Sovcombank, said that the signals of the Central Bank, the level of inflation and the expectations of the public and business community regarding the pace of price growth are in favor of increasing the rate. The expert explained that inflation is above the 6.5-7% range predicted by the Central Bank, and the public and business community regarding the pace of price growth continues to rise. Other factors supporting inflation include a shortage of personnel in the labor market, high domestic demand and costs resulting from sanctions.
According to the analyst, inflation will be 7.1% by the end of 2024, but risks have shifted to higher values. Therefore, the expert expects the key interest rate to rise to 20% this fall.
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Average rate in the top 10 banks before grew up up to 17.63% per annum.
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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.