Cbank says raises key rate by 1 pp to 8.5% first since Sep 2022

MOSCOW, Jul 21 (PRIME) -- Russia’s central bank has increased the key rate by 1 percentage point to 8.5% annually for the first time since September 2022, the regulator said in a statement on Friday.

“The current inflation rate including a wide range of stable indicators has exceeded 4% in annual terms, and the prices continue to grow. Internal demand growth has exceeded the ability of production expansion, among other things because of limited free labor resources,” the central bank said.

“These factors make the economy’s inflation pressure heavier. Inflationary expectations rise as well. The internal demand dynamics and ruble weakening seen since the beginning of 2023 strengthen proinfationary risks much.

“The central bank’s monetary policy will restrict inflation’s upward deviation from the target and is aimed at returning the inflation rate to 4% in 2024,” the regulator added.

The next meeting of the board of directors is scheduled for September 15.

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