This decision was made to limit risks to price stability, the regulator explained.
The Board of Directors of the Bank of Russia at an emergency meeting decided to raise the main rate by 3.5 percentage points – from 8.5% to 12% per year. The Central Bank announced this on Tuesday, August 15.
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It is indicated that the decision was made to limit risks for price stability.
“Inflationary pressure continues to increase. On August 7, the annual inflation rate rose to 4.4%. At the same time, the current rate of price growth continues to accelerate. On average, in the past three months, current growth, seasonally adjusted , was 7.6% in the recalculation for the year. The same indicator of core inflation rose to 7.1%,” the report said.
The central bank recognizes that the increase in domestic demand, which exceeds the ability to expand output, increases the constant inflationary pressure and affects the dynamics of the ruble exchange rate due to the increase in demand for imports. As a result, the pass-through effect of the depreciation of the ruble on prices increases and inflationary expectations rise.
As you know, on August 14, the official rate of the Russian currency exceeded 101 rubles per dollar, while the euro was worth more than 111 rubles. The weakening of the Russian currency has been going on for more than a year. In the past, the fall of the ruble was sharp, but short-lived.
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Source: korrespondent
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