The Chairman of the Central Bank announced the implementation of all four triggers for raising the key rate.
Elvira Nabiullina explained why the Bank of Russia decided to raise the key rate to 18%.
The first reason is the growth of inflation, RIA Novosti reports. Secondly, consumer activity remains at a fairly high level.
In addition, there is no reduction in the positive gap in the economy, and the rigidity of the labor market is increasing.
The fourth reason is that the risks associated with anti-Russian sanctions have been realized.
All these factors served as the basis for raising the key rate by 200 basis points (2%) or to 18%.
This is the first rate increase in 2024. The current level is 2% lower than the level set at the beginning of April 2022 – 20%.
The Central Bank has previously warned that it will maintain tight monetary policy until inflation falls to an acceptable 4-5%.
