Central bank confirms plans on key rate cut until 2023

MOSCOW, Aug 12 (PRIME) -- The central bank confirmed on Friday its assessment of the need of a further key rate increase in July–December 2022 in its report on monetary policies in 2023–2025.

"The Central Bank of Russia stated that reduction of the key rate in April–July will raise credit availability in the economy. At the same time, taking into account the real and expected inflation, the monetary and credit policy will maintain the necessary disinflation pressure to return inflation to 4% in 2024," the central bank said.

The central bank's key rate target is to achieve a 4% inflation in 2024 and keep it in the future. "Taking into account the necessity of structural remodeling of the economy after the events of the beginning of 2022, the decrease of inflation to the target will take over 1.5 years and will finish in 2024," the regulator said.

The authority expects that the average key rate will amount to 6.5–8.5% in 2023, 6–7% in 2024 and 5–6% in 2025. The central bank lowered the estimate of average disinflationary key rate to 10.5–10.8% in 2022, 6.5–8.5% in 2023, 6–7% in 2024.

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