Central bank says raises key rate to 15% from 13%

MOSCOW, Oct 27 (PRIME) -- Russia’s central bank has unexpectedly raised its key rate by 2 percentage points to 15% annually, driving it to the highest level since May 2022, the regulator said in a statement on Friday.

“The current inflationary pressure has strengthened significantly, and overshoots expectations of the Bank of Russia. Consistent expansion of internal demand exceeds the capabilities for expansion of goods and services production. Inflationary expectations remain elevated,” the central bank said.

Assuming the new mid-term parameters of the budget policy, reduction of the budget stimuli will become slower in the next few years. This means that it was necessary for the regulator to toughen its monetary policy further so that inflation does not speed up and return to the target level of 4% in 2024, the authority said.

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