Deputy Chairman of the Central Bank Zabotkin: On September 13, the regulator could have raised the rate to 20%
At the meeting on September 13, the Bank of Russia could raise the key rate to 20 percent. Deputy Chairman of the Central Bank Alexey Zabotkin spoke about this on the sidelines of the RBC Capital Markets forum, he is quoted by “Interfax”.
According to the regulator’s representative, a moderately tough signal was also considered for the possible option of tightening monetary policy (MP) to 20 percent.
On September 13, the Bank of Russia raised the key rate for the seventh time in 14 months — from 18 to 19 percent. This measure was explained by high inflationary pressure. According to data as of September 9, annual inflation was 9 percent. Experts believe that by the end of 2024, it will exceed the range of 6.5-7 percent, which was forecast in July.
The regulator’s experts expect that, given the current strict monetary policy, annual inflation in the Russian Federation will gradually slow down. After decreasing to 4-4.5 percent in 2025, the growth rate of consumer prices in the country, according to the regulator’s assessment, will be close to the target value of 4 percent in 2026.
The effect of the increase in the key rate will not be seen before six months have passed, said Nikolai Kulbaka, PhD in Economics. This will not have a significant impact on the current economic situation.
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