The Bank of Russia raised the key rate to 18% per annum
The Central Bank of the Russian Federation raised the key rate by two percentage points at once - from 16% to 18%
On July 26, the Bank of Russia Board of Directors decided to raise the key rate by 200 bp, to 18% per annum, according to a statement on the Bank of Russia website .
The Central Bank took into account that inflation accelerated above the bank’s April forecast.
Moreover, the growth of domestic demand is outpacing the ability to expand the supply of goods and services.
Further tightening of monetary policy is required to return inflation to planned levels.
The Bank of Russia plans to assess the advisability of further raising the key rate.
The regulator's forecast was significantly revised upwards towards increasing inflation for 2024 to 6.5–7.0%.
