The Bank of Russia could lift the policy rate to 17 percent at its upcoming meeting, with markets watching closely. The news surfaced on an online platform focused on financial markets, signaling strong attention to the central bank’s next move.
According to Digital Broker analyst Natalya Pyryeva, inflation has grown more concerning since the April meeting on the key rate. The yearly inflation rate rose to 8.07 percent in May, while prices climbed by 0.48 percent during the month, underscoring ongoing price pressure across the economy.
The analyst noted there is little reason to expect inflation to slow quickly, which increases the likelihood that the central bank will pursue a higher policy rate to curb price growth.
Earlier, the Institute for Growth Economics highlighted that there are valid grounds for raising the key rate. It remains unclear whether such a move would effectively temper inflation, but the rationale for tightening policy gained traction amid emerging price pressures.
Meanwhile, authorities were preparing tax reforms impacting individuals and firms. The plan includes a progressive personal income tax scale, a rise in the top personal rate from 15 percent toward 22 percent, and an increase in corporate tax from 20 percent to 25 percent. The Finance Ministry presented these changes to the government, outlining who would be affected, the purposes of the reforms, and how the anticipated revenues would be directed.
In the prior period, officials warned against excessive optimism as the economy faced uncertain inflation dynamics.