The Central Bank has raised the key rate by 0.5 percentage points – up to five percent per annum, the message on the regulator’s website said.
Thus, raising rates occurred according to the second consecutive meeting of the Board of Directors of the Central Bank. In the release of the regulator, this step is due to the increased growth rate of the inflationary expectations of the population and business, as well as the sustainable demand for demand and the displacement of the risk balance towards the oppression.
“The rapid recovery of demand and increased inflationary pressure form the need for an earlier return to neutral monetary policy. The Bank of Russia will evaluate the feasibility of further increasing the key bet in the nearest meetings,” the report says.