Inflation has accelerated and is developing significantly above the Bank of Russia’s April forecast, the regulator said
The Bank of Russia raised the key rate for the first time since December 2023 – from 16% to 18% per annum, and will consider the further raising it at its next meetings, the regulator said on Friday.
“On 26 July 2024, the Bank of Russia’s Board of Directors decided to increase the key rate by 200 basis points to 18.00% per annum. Inflation has accelerated and is developing significantly above the Bank of Russia’s April forecast. Growth in domestic demand is still outstripping the capabilities to expand the supply of goods and services. For inflation to begin decreasing again, monetary policy needs to be tightened further. Returning inflation to the target requires considerably tighter monetary conditions than presumed earlier. The Bank of Russia will consider the necessity of further key rate increase at its upcoming meetings,” the regulator said.
Source: Tass
