Poptsova predicted a possible increase in the key rate of the Central Bank of the Russian Federation in December
The Board of Directors of the Central Bank of the Russian Federation may raise the key rate in December, said Alina Poptsova.
A stock market analyst at Alfa Capital Management Company explained that the Central Bank will aim to curb inflation and maintain the stability of the ruble.
Poptsova noted that the average rate at the end of the year will remain in the range of 21–21.3%, Izvestia writes.
However, if necessary, the rate will increase to 23%, she added.
She also believes that the Central Bank of the Russian Federation will not raise the rate above this level, but will find an alternative.
Inflation, according to the expert, is caused by the growth of costs for logistics, wages and external payments.
In such conditions, as Poptsova explained, a classic rate increase has a limited effect.
The Central Bank, when raising the rate, will be forced to take inflation risks into account.
Poptsova suggested that instead of raising the rate, the Central Bank could tighten reserve requirements and capital requirements.
The regulator may well take measures instead of raising the rate, but with a similar effect.
