Central bank expectedly raises key rate by 0.5 pp to 5%

MOSCOW, Apr 23 (PRIME) -- The board of directors of Russia’s central bank increased the key interest rate by 0.5 percentage points to 5% annually, the regulator said in a statement on Friday.

“The board of directors of the central bank decided to raise the key rate by 50 basis points to 5% annually on April 23, 2021. The consumer prices and inflationary expectations of households and businesses are still high,” it said.

“Demand recovery becomes more stable and tops the output abilities in several sectors. In these conditions, the balance is shifted to proinflation risks. The central bank’s inflation forecast for 2021 was increased to 4.7–5.2%.”

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