The current inflation pressure has increased significantly and is higher than expected, the Bank of Russia admitted.
The Board of Directors of the Bank of Russia decided to increase the main rate by 200 basis points – up to 15%. The regulator announced this on Friday, October 27.
“The current inflation pressure has increased significantly and is higher than expected by the Bank of Russia. The continuous increase in domestic demand increasingly exceeds the possibilities for expanding the production of goods and services. The expectations with inflation remaining at high levels. Lending growth rates remain high,” the report said.
The Central Bank of the Russian Federation raised the inflation forecast for 2023 to 7.0-7.5% from 6.0-7.0%, and also allowed inflation targets to be exceeded in 2024, introducing a forecast range of 4.0-4.5% ( previously – 4%) .
We remind you that on August 15, the Central Bank of the Russian Federation raised the key rate by 350 basis points – to 12% per annum. And on September 15, a decision was made to increase the key rate by another 100 bp. – up to 13%. This was done to limit the risks of price stability.
As you know, on August 14, the official exchange rate of the Russian currency exceeded 101 rubles per dollar, while the euro was worth more than 111 rubles. Today, they give about 93 rubles for a dollar, and 98 rubles for a euro.
Source: korrespondent
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